Date
19 September 2017
Sally Wong says the authorities will increase the quota for the fund mutual recognition program if necessary. Photo: HKEJ
Sally Wong says the authorities will increase the quota for the fund mutual recognition program if necessary. Photo: HKEJ

Less than 6-month wait seen for funds seeking mutual recognition

Sally Wong Chi-ming, chief executive of the Hong Kong Investment Fund Association, expects funds registered in the city to have to wait less than six months for approval under the upcoming mutual recognition of funds program.

The Hong Kong Economic Journal quoted Wong in a report Thursday as saying the authorities will increase the quota for the program if need be, citing officials from the State Administration of Foreign Exchange.

The cross-border mutual recognition program will have an initial overall quota of 300 billion yuan (US$48.3 billion) for each side.

The foreign exchange regulator will disclose on a monthly or quarterly basis how much of the quota has been used.

Asset management veterans are worried that not having a quota for individual fund companies might mean the aggregate limit is quickly reached. 

This discourages fund houses from seeking to have all their funds qualified for the program, Zeal Asset Management chief executive Franco Ngan was quoted as saying.

Ngan said it would be more reasonable for each firm to be allowed to have only between three and five of its funds approved under the mutual recognition program.

Translation by Vey Wong

[Chinese version中文版]

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Hong Kong Economic Journal

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