The China Securities Regulatory Commission is expected to sign a memorandum of understanding with its US counterpart in the next several days that will allow Chinese banks to sell US stock mutual funds, the Wall Street Journal reported. The agreement would expand the existing channels of outbound investment under which banks are limited to selling pure equities funds on behalf of the likes of fund management companies. This is all part of the Qualified Domestic Institutional Investor (QDII) scheme used by banks, brokerages, insurers and fund managers to purchase foreign financial products. HSBC estimates that a total of more than US$50 billion in QDII products have already been approved. However, it is suggested that the weak global stock markets may put Chinese investors off QDII. What’s more, any potential gains made under the scheme will be partially offset by the renminbi strengthening against the US dollar.