Mutual Recognition of Funds
E717470
Mutual Recognition of Funds is a cross-border investment scheme that allows eligible mutual funds authorized in mainland China and Hong Kong to be offered and sold in each other’s markets.
Statements (42)
| Predicate | Object |
|---|---|
| instanceOf |
cross-border investment scheme
ⓘ
fund passporting arrangement ⓘ |
| allows |
offering of eligible Hong Kong funds in mainland China
ⓘ
offering of eligible mainland China funds in Hong Kong ⓘ |
| appliesTo | publicly offered mutual funds ⓘ |
| basedOn | memorandum of regulatory cooperation between CSRC and SFC ⓘ |
| benefit |
broader product choice for investors in both markets
ⓘ
distribution opportunities for fund managers across the border ⓘ |
| eligibilityCriterion |
fund manager must satisfy regulatory and experience requirements
ⓘ
fund must be authorized for public offering in its home market ⓘ fund must meet minimum track record requirements ⓘ fund must meet size and asset under management thresholds ⓘ |
| excludes |
closed-end funds not meeting eligibility criteria
ⓘ
hedge funds ⓘ private funds ⓘ |
| feature |
eligibility requirements for participating funds
ⓘ
home jurisdiction regulation principle ⓘ host jurisdiction recognition of home-authorized funds ⓘ mutual market access for public funds ⓘ ongoing regulatory cooperation between CSRC and SFC ⓘ quota control on cross-border fund flows ⓘ |
| hasFullName | Mutual Recognition of Funds between Mainland China and Hong Kong NERFINISHED ⓘ |
| involves |
ongoing reporting obligations to both home and host regulators
ⓘ
recognition of disclosure documents by host regulator ⓘ |
| jurisdiction |
Hong Kong
NERFINISHED
ⓘ
Mainland China NERFINISHED ⓘ |
| market |
Hong Kong fund investors
ⓘ
mainland China fund investors ⓘ |
| objective |
facilitate two-way opening of mainland China capital markets
ⓘ
promote cross-border fund distribution between mainland China and Hong Kong ⓘ support development of Hong Kong as an international asset management center ⓘ |
| regulator |
China Securities Regulatory Commission
NERFINISHED
ⓘ
Hong Kong Securities and Futures Commission NERFINISHED ⓘ |
| relatedTo |
Bond Connect
NERFINISHED
ⓘ
Stock Connect NERFINISHED ⓘ cross-border fund passporting schemes in Asia ⓘ |
| requires | regulatory approval in host jurisdiction for cross-border offering ⓘ |
| risk |
cross-border supervisory coordination challenges
ⓘ
regulatory arbitrage concerns ⓘ |
| shortName | MRF NERFINISHED ⓘ |
| supervisionPrinciple |
home regulator primarily responsible for prudential supervision
ⓘ
host regulator responsible for conduct and distribution oversight ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.