Domestic securities firms and mutual funds received permission on Wednesday to invest in overseas stocks and other financial products, the South China Morning Post reported. The China Securities Regulatory Commission said the investments could be made through the Qualified Domestic Institutional Investor (QDII) program. Much of the money is expected to flow into Hong Kong but the move is also intended to have an impact on the domestic stock market by draining liquidity from the system and reducing speculation. The regulator did not indicate how much extra money could be invested through QDII but noted that institutions should "set an appropriate size limit for their foreign funds based on the market environment and investment product characteristics." The QDII scheme was launched in June last year but met with a cool response, partly because banks were restricted to offering fixed-income products. Only 3% of the US$15 billion QDII quota granted to banks has been used.