China expands regulated mutual fund channels for overseas US investments

China is widening regulated channels for domestic savers to invest in global assets like US stocks, Treasuries, and gold as domestic bank deposit rates fall below 1% for one-year terms.

The Hong Kong-domiciled Pictet Strategic Income fund grew to $5.1 billion, with roughly 60% of assets coming from mainland retail investors through the Mainland-Hong Kong Mutual Recognition of Funds program.

Regulators raised the maximum share of Hong Kong funds sold to mainland investors to 80% in January 2025, even as authorities cracked down on unlicensed cross-border brokerages.