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Macro US Stocks

Chinese QDII Funds Slash Purchase Caps Days After Raising Them

Several Chinese QDII funds have sharply cut subscription limits just days after raising them, as new quota gets swamped by demand. Wanjia’s Nasdaq 100 index feeder raised its cap from 10 yuan to 5,000 yuan on Sept 9, then cut it to 100 yuan effective Sept 10. China Universal’s Nasdaq 100 ETF feeder lifted its limit to 10,000 yuan on Sept 2, lowered it to 2,000 yuan on Sept 3 and to 10 yuan on Sept 4.

Original source

AI take

The whiplash in caps shows quota, not investor appetite, is the binding constraint on cross-border exposure. Raising a limit only reveals how fast demand absorbs it, forcing funds to slam the door again within days. That rationing keeps a lid on how much mainland money can chase overseas assets, which matters most for funds tracking US benchmarks. Whether fresh QDII quota arrives, or funds keep cycling caps, is the open question.

Generated by AI for reference only.

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