Core Viewpoint - The recent approval of new QDII quotas by the State Administration of Foreign Exchange has alleviated the previous restrictions on QDII funds, leading to a relaxation of purchase limits and a decrease in premiums for certain ETFs [1][4][6] Group 1: QDII Fund Developments - Multiple QDII funds have announced the relaxation of purchase limits, with significant adjustments made by E Fund and Hua Bao, increasing daily purchase limits for several funds [3][4] - As of June 30, the total QDII investment quota in China reached $170.87 billion, with 191 institutions approved for quotas, making public funds the biggest beneficiaries of this round of quota issuance [4][5] - Despite the recent quota relief, over 70% of QDII funds are still under purchase restrictions, with 130 funds limited and 91 funds suspended from subscription [6][7] Group 2: Market Performance and Outlook - Hong Kong and U.S. stocks remain the primary investment destinations for QDII funds, with Hong Kong funds significantly outperforming U.S. counterparts this year [2][8] - The estimated inflow of southbound capital into Hong Kong could exceed HKD 1 trillion for the year, driven by favorable macroeconomic conditions and the search for quality assets [8] - Year-to-date performance shows that Hong Kong-themed funds dominate the QDII performance rankings, with many innovative drug-themed products rising over 50%, while U.S. ETFs have shown modest gains of around 6-8% [9] Group 3: Future Considerations for U.S. Markets - The future trajectory of U.S. stocks hinges on the ability of the U.S. economy to maintain a "soft landing," with potential risks of recession impacting market performance [10] - The AI sector is expected to remain a key driver for U.S. stock growth, with ongoing developments in the industry supporting a positive long-term outlook [10]