Qualified domestic institutional investor (QDII) funds in China have seen impressive gains in 2020 despite the global economic impacts of the COVID-19 pandemic.
As of 27 November QDII share funds (A category) have seen an increase of 13.47% since the start of the year, while QDII mixed funds (A category) a 30.07% rise, according to data from China Galaxy Securities. In 2020 a number of individual fund products have also seen gains in excess of 90%.
23 QDII funds have seen increases in their net value of over 50%, led by the Huitianfu Global Consumer US Dollar Fund (汇添富全球消费美元基金), which saw an increase of 92.39%, the Guangfa Jingxuan US Dollar Fund (广发全球精选美元基金), with net value growth of 91.05%, and the Southern Hong Kong Chengzhang Fund (南方香港成长基金).
QDII’s are domestic institutional investors in China that have obtained approval from regulators to invest in offshore securities and bonds, under a scheme first launched in 2006 and overseen by the China Securities Regulatory Commission (CSRC) and the China Banking and Insurance Regulatory Commission (CBIRC).