The Securities and Futures Commission (SFC) and the China Securities Regulatory Commission (CSRC) have signed a memorandum of regulatory cooperation on mainland-Hong Kong mutual recognition of funds, which will allow eligible Mainland and Hong Kong funds to be distributed in each other’s market through a streamlined vetting process.
The memorandum also established a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of funds.
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SFC chairman Carlson Tong said: "The Mutual Recognition of Funds initiative is a major breakthrough in the opening up of the Mainland’s funds market to offshore funds. It will also open up a new frontier for the Mainland and Hong Kong asset management industries and make available a wider selection of fund products to investors in both markets."
"More importantly, this initiative will lay the foundation for the CSRC and SFC to jointly develop a fund regulatory standard, promoting the integration and development of the Asian asset management industry," Tong added.
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