Several asset management firms are preparing to lodge applications for planned fund sales in the mainland as a mutual fund recognition scheme between Hong Kong and China gets underway.
BOCHK Asset Management, Schroder Investment Management (Hong Kong) and Zeal Asset Management are among the first batch of firms applying to China’s securities regulator for permission to market their funds in mainland China, the Hong Kong Economic Journal reported.
Au King-lun, chief executive of BOCHK Asset Management, was quoted as saying that his firm has filed applications to the Chinese watchdog to sell two funds in the mainland.
Meanwhile, mainland affiliate Bank of China Investment Management Co. will seek similar cross-border recognition for two of its funds from Hong Kong’s Securities and Futures Commission.
Market veterans expect southbound applications to outnumber northbound ones due to the fact that only about 100 Hong Kong funds are deemed qualified for the scheme, compared to about 850 mainland funds.
Au said his firm will leverage the parent’s network in the mainland and market the funds in key Chinese cities.
Andrew Fung Hau-chung, executive director of Hang Seng Bank (00011.HK), said the bank plans to introduce to mainland investors, through the mutual recognition scheme, two funds worth a combined HK$100 billion in terms of assets under management.
The two funds are Hang Seng H-share Index ETF and Hang Seng Index ETF.
Invesco Ltd., The Hongkong and Shanghai Banking Corp., Standard Chartered Bank (Hong Kong), and Shanghai Commercial Bank are also said to be tapping into the scheme.
Translation by Vey Wong
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