Chinese banks were given the go-ahead to invest as much as 50% of their overseas investment quotas in equity funds endorsed by overseas regulators such as the Hong Kong Securities and Futures Commission. The Hong Kong stock market was expected to perform strongly Monday as a result. This latest liberalization in the Qualified Domestic Institutional Investor (QDII) program is seen as a move to encourage capital outflows from the overheating Chinese economy, the South China Morning Post reported. Deutsche Bank estimates about US$10 billion will leave the country over the next 12 months while Morgan Stanley predicts a US$23.4 billion medium-term outflow. Foreign fund managers can now target the Chinese wealth management market without setting up mandatory local operations. The likes of Fidelity, Capital Group and Vanguard have steered clear of the domestic mutual fund market, which requires foreign firms take minority stakes in joint ventures with local partners.