QDII investment quota approval expected to be opened again

According to Wen Wei Po, the mainland suspended nearly a year of qualified domestic institutional Investor (QDII) Investment quota approval, is expected to resume in the near future. The industry pointed out that the reason is that many qdii funds, seeing a sharp rebound in Hong Kong stocks, but there is no new capital line chasing goods, I am afraid the fund performance will be lagging behind the big city, and then jointly asked the regulatory authorities to reopen the floodgates.　　Once the HKMA resumes its investment quota approval, it means that a large number of new funds from the mainland will continue to flow into Hong Kong equities, thereby fuelling the recent surge in Hong Kong stocks, which may also be a potential asset bubble. The Wall Street Journal quoted fund managers as saying that, in Friday, the foreign exchange administration, together with the State Department and the China Securities Regulatory Commission, met with some of the fund managers and heard the fund managers ' views on the Qdii quota system and current market conditions in closed-door meetings. Fund managers said the move showed that the agency was considering a resumption of approvals after nearly a year of informal suspension of QDII quota approval.　　Because mutual funds have been urging government departments to reopen overseas market investment channels in order to seize the opportunity to improve market conditions. Hong Kong high-rise qdii wants new money to hunt for goods according to a person involved in the discussions, the officials said the authorities would choose to grant the qdii quota based on the applicant's qualifications, rather than the time of the application. Executives at one Shanghai mutual fund company say there may soon be new qdii products in the market.　　The company is one of 9 mainland companies currently applying for a new qdii fund. A+h shares into the qdii to increase the key mainland qdii, the current issue of QDII funds are constantly adding H shares, so that Hong Kong's economy has not been significantly improved, but the stock market is "close". According to the mainland "securities Times" reported that at present, QDII, QFII funds and mutual funds are the main channel of capital inflow, as of the end of the first quarter, the QDII fund to match the trend of the Hong Kong market significantly strengthened, of which the exchange of global equities in the ratio of HK $34.98% increase, a H shares into focus, such as PetroChina, China Life, ICBC.　　Among them, KA Real overseas Hong Kong stock ratio reached 81.9%, is the highest of the same kind of fund, followed by Haitong overseas and Warburg overseas China growth, close to 80%. BOC Monthly: The asset bubble in the face of international hot money poured into Hong Kong, recently many experts and academics have warned that a new round of asset bubbles may be formed. As the latest issue of the BOC Economic Journal points out, the aggregate balance of the banking system in Hong Kong, as a free port of capital, is a record-by-day increase in global liquidity.　　But be aware that in the event of a flood of liquidity ebb and flow, there will be extreme volatility in the global financial markets immersed in it, which in turn affects the economic recovery process. The report argues that the global central bank bailout and the stimulus of a large amount of liquidity to the stock market should not be linked to the risk of a new bubble brewing in the flood of moneyUndue laxity is comparable to the stimulating effect of the stock market. In a red-hot market, investors with a weak sense of risk can push the stock market up to irrational heights, but in a crisis rally, the stock market still has to accept the test of whether the economy and corporate earnings are truly recovering.