The two eligible funds – an equity fund and a multi-asset fund, are invested in the onshore Chinese market and managed by HSBC Jintrust, a local joint venture of HSBC GAM.
The firm did not name the products and said it will detail them following the regulatory approvals.
The two onshore China funds will be distributed through HSBC’s network in Hong Kong and Bank of Communications Hong Kong Branch’s network, a strategic partner of HSBC for the MRF.
HSBC is also exploring ways to offer funds to Chinese investors through the northbound link.
“As Hong Kong retail investors look to diversify their portfolios to include RMB investments, MRF will provide an additional channel to invest into the mainland equity and bond markets through funds,” said Diana Cesar, head of retail banking and wealth management of HSBC in Hong Kong.
The bank is committed to providing a broad range of suitable funds to help retail customers capture new opportunities in mainland China, Cesar added.
Pedro Bastos, CEO Hong Kong and regional head of Asia-Pacific at HSBC GAM, said portfolios of global investors are likely to be realigned as China continues with its capital market reforms.
“Mainland China’s acceleration of policy reforms to further open up its markets will significantly shape the portfolios of both global investors looking to participate in mainland China’s growth story, and of domestic emerging wealthy seeking diversification outside their home market,” said Bastos.
Helen Wong, chief executive for Greater China at HSBC, said the MRF will further cement Hong Kong’s position as the key investment centre for international and Hong Kong investors to trade renminbi products.
Shanghai-based Z-Ben Advisors said the MRF offers the best strategic growth opportunity for asset managers over the next ten years and the programme will attract capital inflows of RMB80bn ($12.9bn) by 2016 and RMB1trn ($161bn) by 2020.