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Friday, December 18, 2015, 18:32

7 cross-border funds named under MRF scheme

By Emma Dai /

HONG KONG - The first batch of three Hong Kong and four mainland funds was approved under the cross-border Mutual Recognition of Funds (MRF) scheme on Friday.

The China Securities Regulatory Commission (CSRC) registered three out of 17 Hong Kong domiciled funds that applied for public offering on the Chinese mainland since the MRF took effect on July 1. Meanwhile, the Securities and Futures Commission (SFC) of Hong Kong also chose four mainland funds among 30 applications received for distribution in the SAR, the authorities announced on Friday.

"In the future, CSRC and SFC will continue to register other funds under the MRF," the CSRC stated on its website on Friday.

Hong Kong Investment Funds Association Chairman Terry Pan San-kong earlier this week said he expected "more than a few" funds to be approved for the scheme by the year’s end. Pan said it would take two months for the funds to be set up for distribution in new markets.

The three Hong Kong funds approved for mainland distribution are Hang Seng China H-Share Index Fund, issued by Hang Seng Investment Management Limited; ZEAL Voyage China Fund, issued by Zeal Asset Management; and JPMorgan Asian Total Return Bond Fund, issued by JPMorgan Funds (Asia) Limited.

The four mainland funds registered in Hong Kong are ChinaAMC Return Securities Investment Fund issued by China Asset Management Co Ltd, ICBCCS China Core Value Mixed Fund issued by ICBC Credit Suisse Asset Management Company Limited, HSBC Jintrust Large Cap Equity Securities Investment Fund issued by HSBC Jintrust Fund Management Company Limited, and GF Industry Leaders Mixed Assets Fund issued by GF Fund Management Company Limited.

Hong Kong's Financial Secretary John Tsang on Friday said he was delighted to see that the industry has been participating actively in the mutual recognition of funds arrangement and that more authorized funds will soon be available in both markets.

He also pledged more measures to develop Hong Kong's asset management industry, in order to foster Hong Kong's position as an international asset management center.

Starting July 1, 2015, regulators from both sides have started accepting applications under the mutual recognition of funds arrangement between the mainland and Hong Kong.

According to the arrangement, qualified mainland and Hong Kong funds may be offered directly to the public in each other's market after obtaining authorization or approval under streamlined procedures.

(With Agencies input)

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