Foreign funds will now be on a par with domestic funds.
Northbound funds under the Mutual Recognition of Funds (MRF) scheme continue to see outflows, although more asset managers plan to sell Hong Kong-domiciled funds on this platform, according to China’s financial regulators.
To prepare for China’s MSCI indices inclusion, regulators in Hong Kong and China have announced a four-fold increase in daily trading quotas for the cross-border Stock Connect programmes.
During the market plunge in February, northbound products sold through the China-Hong Kong Mutual Recognition of Funds (MRF) scheme hit record net outflows, according to data from the State Administration of Foreign Exchange (SAFE).
China’s regulator has clarified its position on the halt of Hong Kong equity fund approvals and released some rules for firms intending to launch them.
To support market stability, China’s regulator has told mainland fund houses not to yield to redemption pressure on their A-share holdings, according to local media.
The mainland joint ventures of First State, HSBC and Invesco are among the firms awaiting approval for Hong Kong equity funds, which the regulator is said to have halted due to concern over a surging Hong Kong stock market, local media reported.
In a recent agreement to strengthen links between the two countries, the Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) said they would explore an MRF scheme.
The China Securities Regulatory Commission’s former vice chairman Yao Gang was charged with corruption, according to the Central Commission for Discipline Inspection (CCDI), an anti-graft body.
Former deputy head of trading at ICBC Credit Suisse Asset Management, Wu Tuofu, has been charged with insider trading, according to China’s state-run broadcaster CCTV.