QDII2 first targets Hong Kong investors

Will allow them to buy securities products at HKEx.

China's planned Qualified Domestic Individual Investor program or QDII2 might allow investors to buy securities products at the Hong Kong Exchanges and Clearing, Ltd.

The People’s Bank of China, the central bank, will set up the QDII2 pilot program in Guangdong and is waiting for final approval from the State Council.

QDII2 will first target HKEx and then expand to other financial products in the Hong Kong. It will gradually expand to products in other parts of the world.

Analysts said qualified domestic individual investors should have three years experience in stock investment and financial assets equivalent to no less than US$244,000. The lower and upper limits of a single individual investor for overseas investment are set at US$81,000 and US$3.3 million, respectively.

Currently, only institutional investors in China can invest in overseas capital markets via QDII1.