Mainland and Hong Kong regulators announced at the Mainland-Hong Kong Mutual Recognition of Funds Symposium on July 3rd that with the launch of the mutual recognition of funds (MRF) scheme on July 1st, 14 mainland Chinese funds have applied in Hong Kong while 11 international funds are seeking approvals in the mainland on opening day.
We are proud to announce that our investment funds team has advised 10 of the first 14 funds on their applications under the MRF scheme, representing 5 of the 8 mainland managers who are applying to distribute their funds in Hong Kong.
“The launch of the MRF scheme is an important step towards positioning Hong Kong as a leading asset management hub in Asia and at the same time benefitting the mainland funds industry, “ said Deacons partner Taylor Hui.
Partner Alwyn Li concurred that “this is just the beginning and there are more funds that we are working on in the pipeline. We are delighted to advise our clients on these long-anticipated cross-border initiatives.”
Under the cross border fund scheme, approximately 100 Hong Kong domiciled funds that have been in the city with more than a year’s track record were reported to be qualified to seek approval in the mainland, while it is also reported that 850 mainland funds could be brought to Hong Kong subject to regulatory approval.