According to a report from CITIC SEC, the total net asset value of QDII funds reached 908.7 billion yuan at the end of the second quarter of 2026, marking a 13% quarter-on-quarter increase. The primary driver of this growth was overseas equity funds, with equity and hybrid fund sizes expanding by 109 billion yuan.
During the second quarter, six new QDII funds were launched, with a combined scale of 2.3 billion yuan, predominantly targeting the Hong Kong market. Amid the global technology investment wave, overseas equity assets such as US and South Korean stocks continued to rally in the second quarter, creating a "mutual rise in both net asset value and fund size" trend.
The latest scale of Hong Kong mutual recognition funds stood at 275.6 billion yuan. Within this category, equity fund sizes grew while bond funds shrank. CITIC SEC attributes this "stock increase, bond decrease" shift in scale primarily to the performance differentials observed in the second quarter.
Key Insights from CITIC SEC:
QDII Fund Market Overview: Overseas Equity Funds See "Double Growth"
As of the end of the second quarter of 2026, the total number of QDII funds was 282, with a total scale of 908.7 billion yuan (excluding feeder funds), a 13% increase quarter-on-quarter. Funds labeled as US equities and global equities expanded by 114.9 billion yuan and 46.4 billion yuan, respectively, contributing the most to the overall growth. The six new QDII funds launched in Q2, with a total size of 2.3 billion yuan, were primarily invested in the Hong Kong market, focusing on themes like technology and biomedicine.
Latest QDII Quota Status: Cumulative Quota of $176.169 Billion, No New Quota in Q2
The most recent batch of QDII quotas was the $5.3 billion issued by the State Administration of Foreign Exchange in late March 2026. Currently, securities and fund management institutions hold a cumulative quota of $97.28 billion, accounting for 55% of the total. Over the past five years, the SAFE has consistently increased QDII quota allocations to these institutions, fostering the ongoing development of the QDII fund product line.
QDII Fund Supply and Demand Structure: Clear Head-Company Effect; Equity Funds Dominated by Retail Investors
By the end of Q2 2026, the top five fund managers controlled 52% of the market share, demonstrating a significant head-company effect. Equity funds represented the largest investment type for each manager. For funds labeled as global equities, US equities, Hong Kong equities, and Greater China equities, individual investor holdings exceeded 60%. Bond funds, in contrast, are predominantly held by institutional investors.
QDII Fund Performance: Overseas Equity Funds Lead Returns in Q2
In the equity market, driven by the AI wave, funds labeled as global equities, developed market equities, and US equities posted average returns of 65.25%, 49.53%, and 38.25% in the second quarter, ranking among the top three. Hong Kong equity and Greater China equity funds experienced average losses of 7.96% and 13.56%, respectively. In the bond market, average returns declined by nearly 1% in Q2. Among commodities, gold-themed funds saw an average return of -12.73% in the second quarter.
Hong Kong Mutual Recognition Fund Overview: Total Scale of 275.6 Billion Yuan, Showing "Stock Increase, Bond Decrease" Trend
Sales from the mainland account for approximately 39% of the total. The scales for equity, bond, and hybrid funds were 108.2 billion yuan, 115.6 billion yuan, and 51.8 billion yuan, respectively. In the second quarter, 13 new mutual recognition funds were included, all of which were new share classes of existing products. The performance of the global equity market, particularly the technology theme, was outstanding in Q2, leading to a growth in equity fund sizes and a decline in bond fund sizes. The scale-weighted return for equity funds in Q2 was 20.9%, while hybrid funds achieved 18.0%. Bond funds posted a scale-weighted return of 1.2%. The change in performance was a key factor behind the "stock increase, bond decrease" trend in fund scale.
Risk Factors: Significant exchange rate fluctuations; liquidity tightening risks; risks from unexpected policy changes; and risks from overseas market volatility.
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