CITIC Securities: Mutual recognition funds have been newly approved, QDII funds are expected to expand.

CITIC Securities research report stated that by the end of 2025, the scale of QDII funds reached 804.6 billion yuan, a year-on-year increase of 59.8%, with funds tracking Hong Kong stock indexes such as the Hang Seng Tech Index seeing the largest growth. The newly issued products in the Chinese Hong Kong market have a wide range of investment fields and diverse industries. In terms of performance, the Asia-Pacific market led the global market in 2025, with a 65.7% increase in gold prices. In the context of global de-dollarization, gold continues to be favored by the market. The latest scale of Hong Kong mutual recognition funds is 265.9 billion yuan, and the first batch of 4 products were approved at the end of February 2026 after the implementation of new regulations, with the potential for future expansion. The optimization adjustment of the public offering QDII quota will tilt towards public offering products. We estimate that in the next five years, there will be an additional 321 billion yuan in QDII quotas, which is expected to further promote the development of QDII funds.