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Northbound MRF funds record highest inflow in 13 months

Northbound funds under the Mutual Recognition of Funds (MRF) set another record for net inflows in September, according to data from the State Administration of Foreign Exchange.
Businesspeople walking through turnstile

Monthly net sales for Hong Kong-domiciled funds available for sale in China (northbound) continued to surge and grew 58.6% to reach RMB 1.50bn ($226.9m).

Total net inflows for the northbound scheme since January 2016 are now RMB 12.2bn.

During the third quarter, the trend of net sales in northbound and southbound funds went in opposite directions.

Northbound funds picked up since August after a 7-month downward streak.

Southbound sales − mainland funds sold in Hong Kong − were down by comparison. Net sales of China-domiciled funds sold in the SAR hit an all-time high of RMB 61.5m ($9.28m) in July but fell to RMB 12.35m ($1.86m) for the month of September.

In terms of gross sales, China-domiciled funds in September were down to RMB 55.9m from RMB 89m in July and August.

Since the beginning of 2016, only nine Hong Kong-domiciled funds have been approved for sale to mainland investors by the China Securities Regulatory Commission under the MRF programme. On the flipside, there are two dozen China-domiciled funds available for sale in the SAR.

Nonetheless, the net sales of the nine northbound funds have way outpaced the larger number of China-domiciled funds selling in Hong Kong.

MRF monthly net sales (RMBm)

Northbound Southbound





-181.6 3.6
 March -10.2



67.4 8.8
 May 1140.8


 June 928.7



313.7 61.5
August 948.1



1504.4 12.3
Total net sales since Jan 2016  12,197.7


 Source: State Administration of Foreign Exchange

Part of the Mark Allen Group.