The China Securities Regulatory Commission (CSRC), the State Administration of Foreign Exchange (SAFE) and the Securities and Futures Commission (SFC) of Hong Kong are said to have agreed on a framework for mutual recognition of funds between the mainland and Hong Kong, the 21st Century Business Herald reported Thursday. A preliminary understanding has been reached on the matter after nine months of negotiation, it said. Authorities are expected to unveil details of the plan shortly. Once implemented, the new regime will allow mainland residents to subscribe to funds registered in and operated out of Hong Kong. As of end-June, there were 1,845 unit trust and mutual funds traded in Hong Kong. Of them, 318 — or 17.2 percent — were registered and run in Hong Kong, the report noted.
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