Mutual recognition of funds between Mainland China and Hong Kong welcomed
(27 May 2015 – Hong Kong) The Hong Kong Monetary Authority (HKMA) welcomed the announcement by the Securities and Futures Commission and the China Securities Regulatory Commission concerning mutual recognition of funds between Mainland and Hong Kong.
Norman Chan, chief executive of the HKMA, said, “This is another milestone in the liberalisation of the Mainland’s capital account after the establishment of mutual stock market access between Shanghai and Hong Kong.
“It also facilitates Hong Kong’s development into a full service asset management centre in Asia.
“The client base of locally domiciled funds will expand to include Mainland investors, while Mainland funds will become accessible to global investors through the mutual recognition arrangement,” Chan said.
“More fund administration, asset management, distribution and marketing activities and other related functions will take place in Hong Kong.”
"Mutual recognition of funds will also deepen financial links between Hong Kong and the Mainland in terms of market infrastructure and regulatory cooperation.
“For the implementation of mutual recognition of funds, the HKMA is working closely with relevant institutions on the Mainland to establish an efficient fund processing platform to provide an automatic channel for cross border transactions and cash settlement.
“I look forward to seeing the successful implementation of the arrangement,” said Chan.
Subscribe