The first batch of funds approved under the cross-border mutual fund recognition program is likely to be unveiled Friday, the Hong Kong Economic Journal reported.
It will involve funds worth 20 billion yuan on both ends in Hong Kong and mainland China, the paper cited sources as saying.
This batch is aimed at testing the market, the sources said, adding that there will be no more than five funds on each side that will get the nod.
According to earlier disclosure by securities authorities, 14 mainland funds have sought to be qualified under the scheme for southbound sales while that for northbound amounted to 17.
Terry Pan San-kong, Invesco’s chief executive for Greater China, Singapore and South Korea, said he expects the actual sales of such funds can begin only at the end of February, given the estimated three to four weeks for preparation and the Chinese New Year holidays in between.
Fund companies, meanwhile, have been warned against potential mis-selling by China salespersons, given different practices on the two sides, said Josephine Chung, director of CompliancePlus Consulting.
Deviations in market practices and pertinent laws are widely perceived as a potential challenge in sales of mutually recognized funds.
Tax and cross-border fund management are some other issues that are awaiting clarity from the mainland authorities.
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