GUANGZHOU (Fund China) – There may be much upset, suspicious and expectant for the QDII funds in 2007 fund market.

Some investors may re-consider a Margin Call or a Redemption against the equity funds as the Southern Global Enhanced Balanced Fund and CIFM Asia Pacific Advantage Fund open the IPO and redemptions at last Wednesday and this Thirsday.

However, in many securities institutions and fund managers eyes, such funds seems to be born out of time, but as a new financial variety, there are preferential policies and the support of the economic environment for its growing, the QDII is still expected to generate an ideal long-term benefits in the future development.

Actually, the equity fund suffered a lot oversea. The Hang Seng Index dropped from its historical peak 31958 point to 25862 point from the end of October to November, losing nearly half of its gain in the previous two months. And then the H share is under a re-adjustment, sinking to the bottom and rebound trend.

The inintial QDII equity fund, Southern Global Enhanced Balanced Fund published at September is said to catch the H share crazy uptrend in time, but even that, the fund net value is 0.935 yuan last week, the only fund above 0.9 yuan. Compared to the sharp decline in overseas markets and the performance of similar funds, the fund does show a solidity.

At the same time, a high-profile evaluation from some authoritative institutions to the Hong Kong stock market and the China concept stocks next year enhances people on the QDII fund after-market expectations.

Such as CLSA ltd said, the Hang Seng Index may rise above 31000 point to 42000 point and the Hang Seng China Enterprises Index would reach the range from 18700 to 22000 point as the QDII invest quota continues to extend, the China economy retains in forceful growth, RMB appreciates and the RMB shares maintains high profit growth.

The Planning Exeutive of Merrill Lynch & Co said the Hongkong stock mareket is the only one increased under the Asian monetary policy easing, and the actual decline in the interest rate.

It is really a feast for the investors. The China securities market director of JPMorgan Chase Bank, Lijing also said, the Hongkong-listed Chinese stocks will performan better than the A share next year.

XieWeihong, manager of the Southern Global fund said under the global market slump situation, the invest opportunity will appear in some reginos of the market boosted by a needed ajustment and a high expection of the commodity price. The invest and research team at home and aborad of the Southern QDII funds will seize the chance actively.

Meanwhile, a 1 billion US dollar superaddition application has been handed in to The State Administration of Foreign Exchange. The analysis said that based on the risk diversification, the Southern QDII equity Fund will pursuit for stable returns under a long-term investment strategy.

The investors should not worry about the “below face value” short-term status considering it is only 4 months since the QDII equity funds published. And the QDII equity fonds will seize more invest opportunities sooner or later next year.

Copyright Fund China 2009.

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