More stock-focused QDII funds in pipeline

Two stock-focused funds under the qualified domestic institutional investor (QDII) program will be launched shortly by Huaxia Fund Management and Harvest Fund Management, reported state media. The funds are waiting for approval by the State Administration of Foreign Exchange. The Huaxia QDII product will be the second stock-focused QDII product after China Southern Fund Management. The Huaxia Fund hopes to increase its quota to US$4.5 billion, exceeding the scheduled limit of US$2.5 billion. The Harvest Fund also wants to increase its quota to between US$4 billion and US$5 billion. The Huaxia Fund will invest in developed and emerging markets, and its investment in stocks and other equities will be greater than 60 percent of the fund's assets. The Harvest Fund will focus on H-shares, red-chip stocks and Chinese stocks listed in the US and Singapore.