Hopes are rising that Chinese investors will rediscover their appetite for investing overseas.
They have been fuelled by the recent launch of a gold fund by Lion Fund Management. This invests in about 30 international gold exchange traded funds, according to China Daily, and raised about Rmb3.2bn ($486m) under the Qualified Domestic Institutional Investor scheme.
Funds investing internationally under the QDII scheme have had a difficult birth. The system was liberalised in 2006 with the aim of channelling part of China’s $2,000bn domestic savings overseas. Several high profile fund launches gathered several billions of dollars at the time, as retail investors queued to participate in an investment feeding frenzy.