The Impacts Of Fintech Platforms On QDII Funds

With the continuous development of China’s capital market and the continuous promotion of internationalization,the demand for diversified asset portfolios of investors is increasing.QDII(Qualified Domestic Institutional Investor)funds,as one of the important measures for China’s capital market opening up,are booming and continuously releasing new vitality.Considering the disruptive financial innovation of Fintech,especially the platforming of Fintech,which not only serves as an information intermediary,but also a sales channel,the financial innovation brought about by the development of Fintech Platforms will have significant implications for the further high-quality development of QDII funds.Currently,research on Fintech is not sufficient,especially in terms of its impact on QDII funds,and there is still a research gap.Therefore,this study has certain theoretical and practical significance.This article explores the impact of Fintech Platforms on QDII funds from the perspective of exogenous technological shocks and compares it with stock-type and mixed-type funds.In addition,since asset allocation is one of the main influencing factors of QDII fund performance,this article also explores the impact on the concentration of investment regions of QDII funds and further explores it after considering the individual characteristics of fund managers.Based on quarterly panel data of 7,345 Chinese public funds from the first quarter of 2007 to the fourth quarter of2021,empirical research design is conducted through multi-time point double-difference model and continuous double-difference model.The study found that(1)Fintech Platforms have a significant impact on the fund flow,rate of return,and Sharpe ratio of QDII funds,but the impact is different from that of domestic open-ended stock-type and mixed-type funds.Fintech Platform does not significantly affect the Alpha of QDII funds(the difference between the absolute return of the fund manager and the expected risk report,used to reflect the investment technique of the fund manager).Therefore,although Fintech Platform also intensifies competition among QDII funds,it does not have as much impact as it does on stock-type and mixed-type funds;(2)Fintech Platform also affects the concentration of investment regions of QDII funds.The introduction of platforming reduces the concentration of investment regions of QDII funds,thereby increasing the diversification of investment destinations;(3)After considering the personal characteristics of fund managers,it was found that after the introduction of Fintech Platform,QDII fund managers with a doctoral degree and male gender tend to increase the concentration of investment regions.Therefore,Fintech brings more fund flows to QDII funds and strengthens the tournament effect of QDII funds,resulting in higher returns.However,Fintech does not significantly improve the ability of QDII fund managers,which is different from the impact on domestic stock and mixed-type funds.Therefore,the competition brought by Fintech to QDII funds is not as great as that of stock-type and mixed-type funds.Furthermore,this study found that the characteristics of fund managers affect the weakening effect of Fintech on the concentration of investment regions of QDII funds.The results of this study show that male and QDII fund managers with a doctoral degree have a stronger "local preference" in the post-platform era and tend to invest more in developed overseas markets.