GUANGZHOU (Fund China) - Following on the 12th Oct, China International Fund approved 4 billion US dollars overseas securities investment amount, the Chinese State Administration of Foreign Exchange announced on the 22nd Oct again approved, the company increased overseas securities investment amount 1 billion US dollars. At this point, the amount of investment QDII fund reached 19.5 billion US dollars, approaching 20 billion US dollars mark.

The fact that the Banking and Insurance have approved QDII amount, as of now, the Exchange Council approved the QDII in the amount of about 40 billion US dollars. The dollar to 7.50 yuan exchange rate rough estimate, through this channel can probably outflow of funds in about 300 billion yuan.

It is worth noting that, in the 40 billion US dollars of QDII amount, more than 20 billion US dollars in the last two months is granted, more than a year earlier than the time the QDII amount awarded more. That is to say, the last two lines of QDII approved at an obviously accelerated.

The industry believes that because of the scale of foreign exchange reserves growing, while China’s stock market and real estate market continued to heat, management accelerated approval of QDII amount helps ease the problem of excess liquidity, at the same time be able to Chinese stock market, real estate market proper cooling. QDII is expected for some time to come there will be a level of accelerated growth trend.

Copyright Fund China 2008.

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