Date
16 December 2017
CY Leung. Photo: HKEJ
CY Leung. Photo: HKEJ

Next goal is mutual recognition of fund products, CY Leung says

Hong Kong Chief Executive Leung Chun-ying {梁振英} said funds established in the city may soon be allowed to sell in the mainland market and vice versa, the Hong Kong Economic Journal reported Wednesday.

Leung’s remarks came after Xiao Gang {肖鋼}, chairman of the China Securities Regulatory Commission, said during the Bo’ao forum in early April that China will promote cross-border sales of investment funds as another important step in further opening up the financial markets of both sides to each other, following the recent launch of the Shanghai-Hong Kong Stock Connect.

About 500 mainland-established funds would be eligible for the proposed scheme, the Hong Kong Economic Times reported Wednesday, citing Hong Kong’s Securities and Futures Commission. They will be gradually approved to sell in Hong Kong, an unnamed source was quoted as saying.

The cross-border fund scheme is expected increase revenue by US$3.5 billion for the local fund industry and push up the city’s per capita gross domestic product by US$500.

Every new position in the fund management sector is estimated to create 4.6 supporting jobs in the professional service industries, HKET reported.

Leung said the government also plans to expand the functions of the Financial Services Development Council to cover areas like shipping finance and enlarge the local financial industry, aiming to strengthen Hong Kong’s role as a middleman between China and the rest of the world.

Reacting to concerns that Shanghai would replace Hong Kong as China’s international financial center, Leung told HKEJ that it will not be a “zero-sum game” between the two cities.

Also at the Bo’ao forum, People’s Bank of China governor Zhou Xiaochuan said the central government will encourage the sale of dim sum and panda bonds in the Hong Kong and mainland markets, respectively, and expand overseas investment channels for mainland investors.

– Contact HKEJ at [email protected]

MY/JP/CG

 

EJI Weekly Newsletter

Please click here to unsubscribe