Bank Of China Investment Management Co., Invesco Ltd. and J.P. Morgan Asset Management are among the firms that have applied to Hong Kong’s Securities and Futures Commission for permission to sell their mainland China registered funds in Hong Kong.
Li Daobin, president of Bank of China Investment Management, said his company is seeking to market two hybrid funds through affiliate BOC Hong Kong (Holdings), the Hong Kong Economic Journal reported.
BOC Investment Management had 195.8 billion yuan of assets under management as of the end of June.
Li said the new program between Hong Kong and China for mutual recognition of funds will not diminish the market’s interest in fund sales via the traditional USD-denominated qualified foreign institutional investor scheme and its renminbi denominated equivalent.
Invesco, meanwhile, has lodged an application for one of its hybrid funds. The firm will have over 20 mutual funds deemed eligible for participation in the scheme by the end of this year.
Under the mutual recognition of funds initiative, funds can launch cross-border sales. Eligible Hong Kong-domiciled funds can be sold to retail investors in China, while qualifying funds from the mainland can market their products in Hong Kong.
Translation by Vey Wong
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