Corporate News Update

Southern Co/The Expands QDII Investment Quota and Launches Technology‑Focused ETF

Southern Co/The, a publicly listed Chinese asset‑management firm, has recently strengthened its position in the global investment landscape by receiving a significant increase in its Qualified Domestic Institutional Investor (QDII) allocation. The State Administration of Foreign Exchange (SAFE) announced on 28 August that the firm’s QDII investment quota has been raised by approximately 3.72 billion yuan, bringing its cumulative authorised amount to roughly 101 billion yuan. Southern Co/The joins a cohort of 79 securities‑fund institutions that hold QDII licences, alongside peers such as China Life, China Universal, and China International, all of whom have also received fresh allocations.

In parallel with this expansion of foreign‑investment capacity, Southern Co/The has been selected as one of ten asset managers authorised to launch a new “innovation board computing infrastructure ETF” in early August. The fund, which is now listed on the Shanghai Stock Exchange, provides exposure to data‑centre and server‑related businesses that underpin the growth of artificial intelligence and other high‑technology applications. This approval aligns with a broader regulatory push to diversify the array of investment products available to retail investors on China’s growth‑equity market.

The simultaneous increase in QDII quota and entry into a technology‑centric ETF reflect Southern Co/The’s strategic focus on diversifying its product mix and capitalising on the rising demand for technology‑driven assets. While the enlarged QDII allocation enhances the firm’s ability to attract foreign capital, the new ETF offers a vehicle for domestic investors to gain indirect access to sectors that are expected to deliver sustained growth over the long term.

These developments are emblematic of a wider trend among Chinese asset managers, which increasingly seek to broaden their product lines and tap into burgeoning interest in technology and sustainability‑linked investments. By expanding its foreign‑investment capacity and launching a new technology‑focused ETF, Southern Co/The positions itself to capture opportunities across both domestic and international markets, thereby reinforcing its competitive standing within the sector.