According to Odaily, on April 19, 2024, the China Securities Regulatory Commission (CSRC) announced five measures to strengthen the capital market cooperation with Hong Kong, thereby bolstering Hong Kong's position as an international financial center. The CSRC recently revised the 'Interim Provisions on Hong Kong Mutual Recognition Fund Management' (CSRC Announcement [2015] No. 12) to further optimize the mutual recognition arrangement of funds between mainland China and Hong Kong. The CSRC is now publicly soliciting opinions on the 'Regulations on Hong Kong Mutual Recognition Fund Management (Draft for Soliciting Opinions)'.
Since the implementation of the mutual recognition mechanism of funds between mainland China and Hong Kong in July 2015, the mutual recognition work of funds between the two places has been steadily and orderly advanced. All systems and mechanisms are operating well, meeting the cross-border financial management needs of investors in both places, and strongly supporting the construction of Hong Kong as an international financial center. To better play the positive role of the mutual recognition mechanism of funds between the two places, this rule revision intends to optimize from two aspects. First, the sales ratio limit of mutual recognition funds in the host place will be relaxed from 50% to 80%. Second, it will allow the transfer of investment management functions of Hong Kong mutual recognition funds to overseas asset management institutions within the same group as the manager.
The CSRC welcomes valuable opinions from all walks of life and will further revise and improve it according to the public solicitation of opinions before implementing it.