The Securities and Futures Commission (SFC) today granted authorization for the first batch of four Mainland funds under the Mainland-Hong Kong Mutual Recognition of Funds (MRF) initiative for public offering in Hong Kong (Note 1).
The SFC also welcomes the approval by the China Securities Regulatory Commission (CSRC) of the first batch of three Hong Kong funds for public offering on the Mainland market.
The MRF initiative is a major breakthrough in the opening up of the Mainland’s funds market to offshore funds. It will 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 (Note 2).
The SFC and the CSRC have been accepting MRF applications since 1 July 2015. The approval of the first batch of funds under the MRF is a milestone in the implementation of this important cross-border cooperation initiative (Note 3).
Notes:
- A list of the Mainland funds authorized by the SFC for public offering in Hong Kong under MRF is available on the SFC website.
- Please see the Joint Announcement by the SFC and CSRC and the SFC Circular dated 22 May 2015.
- As of 18 December 2015, the SFC has received over 30 applications of Mainland funds under the MRF initiative, and the CSRC has received 17 applications of Hong Kong funds under the MRF initiative.