China lets mainland fund management firms operate in Hong Kong
Mainland Chinese fund management firms will be able to operate directly in Hong Kong under the Closer Economic Partnership Agreement, the China Securities Regulatory Commission declared on Sunday, according to a report in The Standard, a Hong Kong-based publication.
The new rules take effect immediately. Previously, mainland fund houses could only operate here through their subsidiaries.
"It is quite positive for the Hong Kong market, because the Hong Kong market will become the wealth management centre of mainland China," said Kenny Tang Sing-hing, associate director at Tung Tai Securities.
"In the mainland, there is lots of money that needs to be invested." Because of foreign-exchange controls, the chances for China to develop a wealth management centre are small, but in Hong Kong there are few restrictions, Tang said.
Hong Kong's Securities and Futures Commission said the new measures would bring more mainland fund management firms to the SAR. "The new measures provide them with a platform to familiarise themselves with international investment and regulatory practices," said SFC chairman Eddy Fong Ching.
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