Morgan Stanley’s Chinese Fund Manager Grabs Approval for QDII Status from Securities Regulator

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Morgan Stanley’s Chinese fund management vehicle has just garnered approval from the China Securities Regulatory Commission (CSRC) for a new licensing status that will enable it to better serve as a bridge between Chinese investors and overseas investment opportunities.

CSRC recently announced that it had approved qualified domestic institutional investor (QDII) status for Morgan Stanley Huaxin Fund Management (摩根士丹利华鑫基金), enabling it to engage in offshore securities investment management operations.

Morgan Stanley Huaxin said that the move would enable it to “take advantage of the global investment capabilities of Morgan Stanley to deploy QDII products that possess market advantages, and help investors to seize investment opportunities for global high-quality assets.”

According to a report from Sina, Morgan Stanley Huaxin is only the tenth fund management company in the past six years to obtain approval for QDII status, enabling them to provide domestic investors with a channel to tap overseas markets.

Data from Wind indicates that as of the end of the third quarter of 2022, 62.32% of QDII funds made investments in Hong Kong, while 26.41% invested in the US market, with only 12% making investments in other regional markets.