China Securities Regulatory Commission issued the “Regulations on the Administration of Mutual Recognition Funds in Hong Kong”

The Zhitong Finance App learned that the China Securities Regulatory Commission has further optimized mutual recognition arrangements between the Mainland and Hong Kong funds, revised and issued the “Regulations on the Administration of Mutual Recognition Funds in Hong Kong”, which will be implemented from January 1, 2025. The main revisions include: First, easing the Hong Kong Mutual Recognition Fund customer sales ratio limit from 50% to 80%. The second is to appropriately relax restrictions on the transfer of investment management functions of Hong Kong Mutual Recognition Funds, and allow the transfer of investment management functions of Hong Kong Mutual Recognition Funds to overseas related institutions within the Group. The third is to reserve space for more conventional products to be included in the scope of the Hong Kong Mutual Recognition Fund in the future.

The original text is as follows:

China Securities Regulatory Commission issued the “Regulations on the Administration of Mutual Recognition Funds in Hong Kong”

In order to deepen practical cooperation between the Mainland and Hong Kong capital markets, better meet the cross-border financial management needs of investors from the two regions, promote a high level of institutional openness in the capital market, and consolidate and enhance Hong Kong's status as an international financial center, the China Securities Regulatory Commission has further optimized mutual recognition arrangements between the Mainland and Hong Kong and revised and issued the “Hong Kong Mutual Recognition Fund Management Regulations” (hereinafter referred to as the “Administrative Provisions”), which will be implemented from January 1, 2025. The “Interim Provisions on the Administration of Mutual Recognition Funds in Hong Kong” (SFC Notice [2015] No. 12) were also abolished.

The main revisions to the “Administrative Regulations” include: First, easing the sales ratio limit for Hong Kong Mutual Recognition Funds from 50% to 80%. The second is to appropriately relax restrictions on the transfer of investment management functions of Hong Kong Mutual Recognition Funds, and allow the transfer of investment management functions of Hong Kong Mutual Recognition Funds to overseas related institutions within the Group. The third is to reserve space for more conventional products to be included in the scope of the Hong Kong Mutual Recognition Fund in the future.

In the next step, the China Securities Regulatory Commission will continue to coordinate openness and security, insist on putting equal emphasis on “introduction” and “going global,” steadily expand the institutional opening of the capital market, continue to implement the “Administrative Regulations”, and truly implement measures to benefit Hong Kong.

This article was selected from the “China Securities Regulatory Commission's official website”, Zhitong Finance Editor: Xu Wenqiang.