BEIJING -- China's first qualified domestic institutional investor (QDII) fund, managed by Hua An Fund Management Co.,Ltd., has begun operating, the firm announced Friday.

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With a subscription of 197 million U.S. dollars from 16,652 subscribers from September 13 to October 20, the Hua An International Balanced Fund, drew more investment than any other QDII product.

China started the QDII scheme in July, allowing domestic institutions and residents to buy financial products overseas via mainland commercial banks and other financial institutions.

Following eight Chinese and overseas-funded commercial banks, the Hua An fund was awarded a QDII license in August and raised more than six million U.S. dollars on the first day of subscription.

The fund will be invested in stocks, bonds, real estate investment trusts and other mainstream financial products in international markets such as New York, London, Tokyo and Hong Kong.

Investors can only withdraw their money from the fund six months after their contracts take effect, said the Hua An Fund Management Co., Ltd.

Established in June 1998, the Hua An company set up China's first open-ended fund and now manages nine securities investment funds valued at 35 billion yuan, including four closed funds and five open-ended funds.

By the end of September, altogether 11 Chinese and overseas-funded commercial banks had acquired QDII licenses, with eight granted quotas totaling 10.3 billion U.S. dollars.