BlackRock Fund becomes first newly established foreign public fund to obtain QDII qualification; QDII quota expanded twice this year

Foreign-funded public fund managers have made new progress in their cross-border business expansion.

Recently, BlackRock Fund received approval for Qualified Domestic Institutional Investor (QDII) status, becoming the first newly established foreign-invested public fund manager to obtain this qualification. Against the backdrop of two expansions of QDII quotas this year and the total quota approved for securities and fund institutions surpassing $100 billion for the first time, foreign-funded public fund managers are accelerating their participation in the cross-border investment market.

BlackRock Fund stated that it would take the approval of its QDII status as a new starting point, continuing to deepen its roots in China and serve Chinese investors while constantly enhancing its investment management and customer service capabilities. Subject to compliance with Chinese laws, regulations, and supervisory requirements, the company will steadily advance the development of QDII-related businesses and product offerings, further enriching channels and opportunities for domestic investors to participate in global markets.

This approval also reflects foreign institutions' sustained optimism about the Chinese market and their commitment to deepening their presence in China's public fund industry. In recent years, as China's public fund industry has continued to develop and residents' wealth management needs have upgraded, foreign institutions have been actively participating in China's asset management market by establishing public fund companies, diversifying product types, and improving investment research and service systems.

QDII Channel Expanded Twice This Year

The pace of QDII channel expansion has notably accelerated since the beginning of this year.

• End of March: The cumulative approved QDII quota across the entire market increased by $5.3 billion compared to the end of 2025, reaching $176.169 billion.
• End of August: The State Administration of Foreign Exchange (SAFE) issued an additional $6.84 billion in QDII quotas to 89 institutions. The cumulative approved QDII quota for 196 institutions rose to $183.009 billion.

Securities and fund institutions were key beneficiaries of this round of expansion. At the end of August:

• 53 securities and fund institutions collectively received an additional $3.72 billion in quotas.
• Their cumulative approved quota reached $101 billion, marking the first time this category surpassed the $100 billion threshold.

From a market perspective, domestic investors' focus on cross-market and cross-asset class allocation has continued to rise in recent years, making QDII products an important compliant channel for domestic capital to access overseas markets. Phenomena such as subscription limits and premium trading prices observed in some QDII products reflect robust demand for global asset allocation tools.

Beyond quota expansions, the number of public fund managers qualified for QDII business is also increasing. Several institutions obtained QDII status for the first time this year; BlackRock Fund's recent approval signifies that newly established foreign-invested public fund managers have entered this business domain.

Rooted in the Chinese Market, Connecting Global Opportunities

For foreign-funded public fund managers, obtaining QDII status means extending their domestic business footprint into the cross-border investment sector. As China's public fund market continues to develop, foreign institutions are deepening their engagement in the Chinese market through establishing public funds and diversifying product lines.

Yu Beihua, General Manager of BlackRock Fund, stated:

"Over the past five years, we have remained rooted in the Chinese market, continuously building local investment capabilities, and deeply integrating BlackRock's global experience with practices in the Chinese market. The approval of our QDII status marks another significant milestone in our business development in China. Looking ahead, we will further leverage the synergies between our global platform and local teams, staying rooted in China while connecting globally, to provide Chinese investors with more diversified investment choices and asset allocation solutions, helping them achieve their long-term investment goals."

In recent years, as Chinese residents' wealth management needs have evolved, investors' attention to cross-market and cross-asset class allocation has continued to grow. Global asset allocation can broaden investment opportunities and enhance portfolio diversity and resilience through the complementary advantages of different markets and asset classes.

Discussing trends in Chinese investor demand, Yu Beihua noted:

"As wealth management concepts mature, Chinese investors are gradually shifting from single-product investments toward more diversified and long-term allocation strategies. We look forward to leveraging BlackRock's global investment insights and our local team's deep understanding of the market to provide investors with rich investment tools and solutions, better meeting their long-term, globalized asset allocation needs."

From an industry trend perspective, the expansion of QDII qualifications and investment quotas is jointly enhancing domestic institutions' ability to allocate assets globally. As more public fund managers enter the cross-border investment market, compliant channels for domestic investors to participate in overseas markets are expected to continue expanding.

Editor: Zhan Shuheng Layout: Liu Junyu Proofreading: Ran Yanqing

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