******************************************************
The Hong Kong Special Administrative Region Government welcomes the signing of a Memorandum of Regulatory Cooperation related to the mutual recognition of funds arrangement between the Mainland and Hong Kong by the Hong Kong Securities and Futures Commission (SFC) and the China Securities Regulatory Commission today (May 22).
The Financial Secretary, Mr John C Tsang, said, "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.
"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."
"We are grateful for the support from the Central Government, as well as the efforts of the regulatory organisations of both sides. At the same time, the Administration will continue to steer the various measures to develop Hong Kong's asset management industry, with a view to fostering Hong Kong's position as an international asset management centre," Mr Tsang added.
The Financial Secretary announced in his Budget in 2013 that the SFC was studying with the relevant Mainland authorities the arrangement for mutual recognition of funds between the Mainland and Hong Kong. The relevant study was included in Supplement X to the Mainland and Hong Kong Closer Economic Partnership Arrangement signed in August 2013. According to the arrangement, qualified Mainland and Hong Kong funds may offer directly to retail investors in each other's market after obtaining authorisation or approval under streamlined procedures.
Ends/Friday, May 22, 2015
Issued at HKT 16:53
NNNN
