Recently, overseas markets have continued to pay attention to related QDII products. Huaxia Nomura Nikkei 225 ETF, E Fund MSCI USA 50 ETF, and other products have appeared with high premiums, leading several QDII funds to issue risk warnings. At the same time, the performance of public fund products in 2023 has been revealed, with data showing that QDII funds have become the focus of investors' purchases in the fourth quarter of 2023, with a subscription ratio of 11%. Among them, the QDII product investing in the Hong Kong stock internet sector saw the largest increase in shares. QDII, short for Qualified Domestic Institutional Investor, refers to funds raised in China in a fund format and invested in overseas assets, allowing domestic investors to indirectly participate in foreign markets. With the continuous development of the global economy, global asset allocation has become increasingly important in long-term investments. Many investors are starting to shift their focus towards overseas investment markets. Last year, the number of QDII funds established reached a record high, with funds flowing into Hong Kong stocks against the market trend. Overall, the performance of QDII funds in 2023 was impressive, with a record number of products issued and established in nearly a decade. Wind data shows that by the end of 2023, there were a total of 60 QDII funds (combining A and C shares, excluding ETF-linked funds) publicly announced to be established. According to the fourth-quarter report of 2023, the total scale of QDII funds exceeded 478.268 billion yuan. In addition, many fund companies are actively reporting new QDII products for approval. As of January 19, 2024, a total of 118 QDII funds have been reported since 2023, with 37 products already approved and 9 products approved but not yet launched. From the reporting situation, Huatai Bairui Fund has applied for 14 products (including linked funds), while Jia Shi, Southern Fund, and other companies have positioned over 10 products. Huitongfu, Bosh, Huaxia Fund, and others have also reported a significant number of products. In overseas markets, in the fourth quarter of 2023, foreign markets such as the U.S. and Japan saw gains, with the Nasdaq index rising more than 13% and the Nikkei 225 index also increasing. In addition, despite the continued decline of the Hang Seng Index in the fourth quarter of 2023, funds entered the market against the trend. Among QDII products, the product investing in the Hong Kong stock internet sector saw the largest increase in shares. Data shows that during the quarter, Huaxia Hang Seng Internet Technology Industry ETF (QDII) saw an increase in shares of 13.6 billion, while Huaxia Hang Seng Technology ETF (QDII) saw an increase of 8.8 billion. Products under Guangfa Fund and Huaxia Fund lead in terms of returns Specifically, in 2023, there were 16 QDII products with a return rate exceeding 50%. Among them, Guangfa Global Select Renminbi Fund led with a rise of 66.08%, while Huaxia Global Technology Pioneer Renminbi Fund ranked second with a return of 58.19%. The Guangfa fund was established on August 18, 2010, and as of January 8, 2024, the fund's return since inception was 307.84%. According to the third-quarter report of 2023, the Guangfa fund focused on artificial intelligence and increased its holdings in China's internet industry assets. Key stock holdings include Nvidia, Microsoft, Google, Tesla, Pinduoduo, and other companies. Similarly, the Huaxia Global Technology Pioneer Renminbi Fund also focuses on the technology sector, mainly investing in leading companies in U.S. internet, semiconductor, SaaS software, consumer electronics, electric vehicles, and other fields. As of the end of the third quarter of last year, the fund's major holdings included Nvidia, Meta, Google, Microsoft, Broadcom, Apple, Tesla, Amazon, AMD, and Lam Research. Apart from the above-mentioned funds, most of the QDII funds with a return rate of over 50% were passive index products. These include funds tracking the Nasdaq 100 Index such as Huaxia Nasdaq 100 ETF, Guotai Nasdaq 100 Index, Huaan Nasdaq 100 ETF, Guotai Nasdaq 100 ETF, Huaan Nasdaq 100 ETF Linked A, Guangfa Nasdaq 100 ETF, and Dacheng Nasdaq 100 ETF Linked A. On the other hand, there were 25 QDII funds with a full-year decline exceeding 20%, with the largest decline being 29.81%. QDII funds tracking the Hang Seng Internet Technology Industry Index, Hang Seng Healthcare Index, Hang Seng Hong Kong Listed Biotechnology Index, and Hang Seng Composite Small Cap Index generally performed poorly. Emerging markets may become a focus of layout Looking ahead to 2024, industry insiders believe that with the expectation of a rate cut by the Federal Reserve heating up, the risk appetite in overseas markets will increase, and the uptrend in markets such as the U.S., Japan, and India is likely to continue. From a global allocation perspective, QDII funds can be considered as a hedge against A-share risks, while also serving the diversification of investments. Several industry insiders have expressed that in recent years, parts of overseas markets with low correlation to A-shares have shown outstanding performance, attracting investors' attention. Public fund companies are focusing on the layout of QDII products, continuously improving their product lines while meeting investors' needs for internationalization and diversified asset allocation. Looking ahead, QDII index products investing in emerging markets are expected to become a focus of layout. Regarding the current timing of layout, a senior analyst at a large public fund stated that the increasing popularity of the QDII fund market indicates a high level of attention from incremental funds, but the polarization of QDII funds is also significant. Funds investing in U.S. and Japanese stocks have outstanding performance, continuing to receive favor from investors, with several related QDII funds announcing suspension of large purchases and some even suspending trading due to premium risk. He suggested that investors should not blindly chase the trend and should choose QDII funds from an overall asset allocation perspective based on their own risk tolerance and understanding of overseas markets and products.