Local brokers and Hong Kong Exchanges and Clearing Ltd. (00388.HK) are in talks to establish a platform for selling funds in the hope of making a breakthrough in a business long dominated by banks, the Hong Kong Economic Journal reported Wednesday.
It is hoped that domestic brokers will soon be qualified to sell funds as well, the newspaper said.
Industry veterans have submitted a proposal to the Financial Services and the Treasury Bureau seeking to unify the platform for the sale of funds and bonds, Hong Kong Securities Association chairman Benny Mau told the Hong Kong Economic Journal.
Given the mutual recognition of funds program between Hong Kong and the mainland, Mau said the stock exchange leans more toward setting up such a unified platform for fund sales first.
The proposal could increase transparency as fund products will then be subscribed to, redeemed and traded through the platform, helping investors in making investment decisions.
Investors can also compare fees and charges incurred in their purchases more easily, Mau said.
The proposal will also be subject to the approval of the China Securities Regulatory Commission as it will involve the transaction of funds registered on the mainland.
Mau said the discussion remains at a preliminary stage. No timetable has been set for the plan, he said.
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