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QDII, abbreviation of Qualified Domestic Institutional Investor, is the mechanism of providing limited opportunities for government recognized domestic financial institutions to access foreign markets at a stage where a country/territory's currency is not traded or floated completely freely and where capital is not able to move completely freely in and out of the country. In the investment management process, in addition to overseas investment advising advantage, the specialized investment team set up by domestic fund companies participates in the entire process of overseas investment, enjoying the complete decision-making power. In 2007, Chinese government has authorized a quote of USD$66 billion in the QDII funds. Many QDII funds under the management of banks, insurance companies, and mutual fund companies were formed in 2007. Mutual fund companies have obtained a total of USD$19.5 billion. Five QDII funds managed by mutual fund companies have actually been issued in 2007 which was totally subscribed by investors within days of its initial offering.
In the following table, the QDII funds approved and issued as of Sept 31, 2007 are listed.
| Category |
Name of QDII |
Approved Capital (billion US dollars) |
Total Capital (billion dollars) |
| Banks |
Commercial and Industrial Bank of China |
2.0 |
16.1 |
| Construction Bank of China |
2.0 |
| Bank of China |
2.5 |
| Communication Bank of China |
1.5 |
| East Asia Bank Mainland China Branch |
0.3 |
| HSBC Mainland China Branch |
0.5 |
| Merchant Bank of China |
1.0 |
| China CITIC Bank |
0.5 |
| Hang Seng Bank |
0.3 |
| CITI Bank |
0.5 |
| Standard Chartered Bank Mainland China Branch |
0.5 |
| Industrial Bank |
0.5 |
| Minsheng Bank |
0.5 |
| China Everbright Bank |
0.5 |
| Bank of China (Hong Kong), Mainland China Branch |
0.3 |
| CREDIT SUISSE Bank Shanghai Branch |
0.3 |
| Agricultural Bank of China |
0.5 |
| Nanyang Commercial Bank Mainland China Branch |
0.3 |
| Bank of Beijing |
0.3 |
| Other Banks |
1.3 |
| Insurance Companies |
Ping An Insurance (group) Company of China Ltd. |
1.75 |
6.57 |
| China Life Insurance (Group) Company |
1.5 |
| PICC Property Company Limited. |
0.238 |
| Other Insurance Company |
3.082 |
| Mutual funds |
Hua'an International LOF |
0.5 |
19.5 |
| Huaxia Global Selecton |
4.0 |
| Nanfang Global Slection |
4.0 |
| Jiashi Overseas Chinese Stocks |
4.0 |
| Shangtou Morgan Asia Pacific Advantage |
5.0 |
| Other funds |
2.0 |
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