HONG KONG, April 1 Hong Kong and China are
putting the finishing touches on a landmark deal that would
encourage money managers to base operations in the former
British colony to target the huge onshore market, a top
regulator said on Tuesday.
Under the plan, called "mutual recognition of funds", Hong
Kong is aiming to encourage money managers to base their funds
and portfolio managers in the city as it looks to correct a
historic skew that has reduced it to largely a sales and
marketing hub for funds.
Not only would the deal give fund managers greater incentive
to set up more Hong Kong-domiciled funds to gain access to the
huge pool of savings on the mainland, it would also lead to more
jobs in the city and consolidate Hong Kong's position as the
leading asset management hub in Asia.
"We have agreed with the CSRC on all the requirements,"
Alexa Lam, deputy chief executive officer at the Securities and
Futures Commission, the city's watchdog, said at the FundForum
Asia 2014 on Tuesday, referring to the China Securities
"So once the final administrative measures have been dealt
with, we will make a joint announcement."
The deal will also encourage more Chinese fund houses to use
Hong Kong as a platform to sell their funds to global investors.
The city is already the first in implementing the Renminbi
Qualified Foreign Institutional Investor (RQFII) scheme that
allows investors in Hong Kong to invest in the onshore markets
in the Chinese currency.
(Reporting by Nishant Kumar; Editing by Kim Coghill)