--- title: "The new batch of QDII quotas in the mainland reaches USD 5.3 billion, the largest since 2021" type: "News" locale: "en" url: "https://longbridge.com/en/news/280964123.md" description: "China has issued a new batch of Qualified Domestic Institutional Investor (QDII) quotas amounting to USD 5.3 billion, the largest since 2021. The cumulative approved quota has reached USD 176.169 billion. Among the newly added quotas, securities institutions were approved for USD 2.99 billion, while insurance and banking sectors were approved for USD 1.32 billion and USD 990 million, respectively. The issuance of QDII quotas is related to the cyclical nature of the RMB exchange rate; from 2023 to 2024, the domestic stock market has declined, leading to a surge in investor interest in overseas assets. Regulatory authorities have stated that they will continue to orderly issue QDII investment quotas to promote the opening of the capital market" datetime: "2026-03-30T06:13:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280964123.md) - [en](https://longbridge.com/en/news/280964123.md) - [zh-HK](https://longbridge.com/zh-HK/news/280964123.md) --- # The new batch of QDII quotas in the mainland reaches USD 5.3 billion, the largest since 2021 According to foreign media citing the approval status report released by the State Administration of Foreign Exchange on last Friday (27th), China has issued a new batch of Qualified Domestic Institutional Investor (QDII) quotas amounting to USD 5.3 billion, the largest single increase since June 2021. As of the end of March this year, the cumulative approved quota has reached USD 176.169 billion. The QDII system allows qualified domestic institutional investors to purchase foreign securities, bonds, and commodities within specified quotas. Reports indicate that the newly approved quotas for securities institutions reached USD 2.99 billion, with a total quota of USD 97.28 billion, both the increase and total quota ranking first; insurance and banking sectors were approved for new quotas of USD 1.32 billion and USD 0.99 billion, respectively; the total quota for trust institutions remained unchanged. ## QDII Issuance Related to RMB Exchange Rate Cycle Over the past five years, the issuance rhythm of QDII quotas has shown a strong correlation with the RMB exchange rate cycle. During the RMB appreciation period from 2020 to 2021, China issued multiple batches of QDII quotas intensively; however, in 2022, as the RMB entered a depreciation cycle, the pace of QDII quota issuance significantly slowed down. Corresponding to the slowdown in issuance pace, the domestic stock market is expected to decline from 2023 to 2024, leading to a surge in Chinese investors' interest in overseas assets. However, under the constraints of limited foreign investment channels and quotas, funds have flowed into exchange-traded funds (ETFs) tracking global benchmarks such as the S&P 500, resulting in significant premiums in the secondary market prices. However, as the RMB exchange rate enters an appreciation cycle and the strong performance of A-shares over the past year has begun to attract foreign capital inflows, concerns about capital outflows in China have significantly eased. At the same time, in promoting the vision of RMB internationalization, regulators have repeatedly stated that they will advance high-level institutional opening of the capital market and continue to orderly issue QDII investment quotas ### Related Stocks - [399106.CN](https://longbridge.com/en/quote/399106.CN.md) - [000001.CN](https://longbridge.com/en/quote/000001.CN.md) - [000300.CN](https://longbridge.com/en/quote/000300.CN.md) - [399001.CN](https://longbridge.com/en/quote/399001.CN.md) - [399108.CN](https://longbridge.com/en/quote/399108.CN.md) ## Related News & Research - [China April Retail Sales +0.2% y/y (exp 2%) & Industrial Prduction +4.1% y/y (exp 5.9%)](https://longbridge.com/en/news/286699672.md) - [New Home Prices Rise, Hold Steady in Five More Major Chinese Cities in April](https://longbridge.com/en/news/286849542.md) - [China's property investment extends decline in January-April](https://longbridge.com/en/news/286699189.md) - [China economy slows sharply as investment returns to contraction](https://longbridge.com/en/news/286707036.md) - [China new home prices fall at slowest monthly pace in a year in April](https://longbridge.com/en/news/286697169.md)