Hong Kong’s Securities and Futures Commission (SFC) has approved the first batch of funds that can be sold via the Mainland-Hong Kong Mutual Recognition of Funds (MRF) initiative for public offering in Hong Kong.
SFC said that it had authorized the first batch of four mainland funds for public sale under the scheme
Additionally, China’s securities regulator China Securities Regulatory Commission (CSRC) has approved three Hong Kong funds to be offered to mainland Chinese investors under the scheme.
The SCF added the scheme 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.
"The MRF (Mutual Recognition of Funds) initiative is a major breakthrough in the opening up of the mainland’s funds market to offshore funds," the SFC said.