China has increased the ceiling for its Qualified Domestic Institutional
Investor (QDII) program to $176.17 billion at end-March, up $5.3 billion from a
month earlier, marking the largest expansion since 2021 and the first hike since
June last year, according to State Administration of Foreign Exchange. The QDII
scheme allows approved domestic institutions to invest in overseas securities
within set limits.
The move comes amid relatively stable yuan conditions and reflects stronger
domestic demand for offshore assets, with officials including currency regulator
Zhu Hexin signaling plans to support cross-border investment and yuan
internationalization. Analysts said the timing suggests confidence in managing
capital flows despite global uncertainty. Becky Liu, head of China macro
strategy at Standard Chartered Bank, said the increase reflects long-planned
capital account opening, while Xiaojia Zhi, economist at Crédit Agricole CIB,
said it signals efforts to promote two-way cross-border flows and confidence in
yuan stability.
