(China Alert) QDII: Evolve to survive
·Foreign participation in China’s trust industry is declining
·A host of new outbound programs better serve key investor demands
·QDII will become a more nuanced program over the next year
Update: v this quota halt is only partially attributable to SAFE’s concerns over capital flight. The past 18 months have seen the launch of several new outbound investment programs that are complementary to QDII and indicate SAFE’s continued willingness to see money leave China. However, these schemes will push manufacturers and distributors to find a new role for QDII, which we suspect will begin to look very different in 2016. Foreign asset managers will continue to win mandates and onshore customers through QDII, but perhaps not in the forms they were expecting.
The QDII engine has been sputtering over the past year, with two……
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