Financial Secretary John Tsang has welcomed the signing of a Memorandum of Regulatory Co-operation related to the mutual recognition of funds arrangement between Hong Kong and the Mainland by the Hong Kong Securities & Futures Commission and the China Securities Regulatory Commission.
According to the arrangement, qualified Hong Kong and Mainland funds can be offered directly to retail investors in both markets after obtaining authorisation under streamlined procedures.
"This is the first mutual recognition of funds arrangement between the Mainland and a market outside the Mainland, which is a major breakthrough for the financial market," he said.
"The arrangement will be conducive to enriching the types of fund products offered in the two places. This will bring about new opportunities for the fund industry in these two places, and deepen the mutual access between the Hong Kong and Mainland financial markets.
"For Hong Kong in particular, not only will this arrangement expand the distribution network for Hong Kong's fund industry, but also attract more funds to domicile in Hong Kong, which will help build up Hong Kong's fund manufacturing capabilities and develop it into a full-fledged fund service centre."
Mr Tsang thanked the Central Government for its support and the regulatory organisations for their efforts.
Hong Kong Monetary Authority Chief Executive Norman Chan also welcomed the arrangement, saying more fund administration, asset management, distribution and marketing activities, and other related functions will take place in Hong Kong.
The authority is working closely with Mainland institutions to establish an efficient fund processing platform to provide an automatic channel for cross border transactions and cash settlement, he added.
