Group 1 - The Japanese Ministry of Finance has requested the Chinese government to relax capital controls, aiming to increase the Qualified Domestic Institutional Investor (QDII) investment quota, which would facilitate more funds flowing into Japanese stock ETFs [2][5] - The request was prompted by the temporary suspension of trading for the "Huaxia Nomura Nikkei 225 ETF" in January 2024, which highlighted the high demand for Japanese stocks among Chinese investors [3][5] - China's trade surplus reached a record high of $992.1 billion in 2024, creating excess funds domestically, while the real estate market remains sluggish and the domestic stock market is underperforming [5] Group 2 - The expansion of the QDII quota is seen as beneficial for China, as it would provide more investment opportunities abroad, especially in Japanese and Western securities, amidst a declining economic growth rate [5][6] - There is a strong desire among Chinese asset management companies for the QDII quota to be increased, as it would allow them to better manage investor orders and avoid significant price deviations in Japanese stock ETFs [3][5] - However, the process of expanding the QDII quota is expected to be cautious due to past experiences of capital outflows and the need to prevent significant depreciation of the Renminbi [6]