China/HK mutual recognition of funds moves forward

Author: Ashley Lee | Published: 22 May 2015

The China Securities Regulatory Commission (CSRC) and Securities and Futures Commission (SFC) have reached an agreement on Mainland – Hong Kong mutual recognition of funds.

The market has anticipated mutual recognition of funds between Hong Kong and China since it was first reported in November 2012. It is one of three competing fund recognition schemes in Asia; the other two are the Asean Collective Investments Scheme (CIS) and the Asian Region Funds Passport (AFRP).

The reforms will allow qualified funds approved by the CSRC and established in China to be distributed in Hong Kong, and funds domiciled in Hong Kong and managed by management companies licensed by the SFC...