Record 38 QDII funds launched this year Morningstar
Chinese investors seek access to U.S, Japanese and emerging markets
Stumbling Chinese economic recovery dents investor confidence
Outflows complicate authorities39; efforts to stabilize the yuan

HONG KONGSHANGHAI, Aug 29 Reuters Disillusioned with a weak stock market at home, geopolitical risks and a falling currency, Chinese investors are pouring money into investment products with exposure to overseas assets that will also help diversify their portfolios.

Retail money has gushed into exchange traded funds ETFs and mutual funds issued under the Qualified Domestic Institutional Investor QDII programme, one of the few channels for Chinese money to be invested abroad, leaving managers of these funds scrambling for more quotas under the strictly managed scheme.

Those investing in QDII products are no longer content staying close to home in Hong Kong equities but are seeking funds that give them access to U.S, Japanese and even emerging markets such as Vietnam and India as the Chinese economy stumbles, analysts said.

A record 38 QDII funds had been launched this year until August 17, outpacing the 31 funds launched in 2022, Morningstar data shows.

Demand for U.S. stocks has emerged since late last year and has strengthened this year due to the lucrative returns. The Nasdaq ETF sold exceptionally well, said Ivan Shi, head of research at Shanghaibased fund consultancy ZBen Advisors.

The total QDII quota of roughly…