Hong Kong's Financial Secretary John Tsang on Friday expressed welcome to the mutual recognition of funds arrangement between the mainland and Hong Kong.
"The mutual recognition of funds arrangement further deepens the mutual access between the mainland and Hong Kong capital markets. The successful implementation of the arrangement is of great significance to not only the development of the fund industry of both the mainland and Hong Kong, but also the promotion of internationalization of Renminbi," Tsang said.
Tsang was delighted to see that the industry has been participating actively in the mutual recognition of funds arrangement and that more authorized funds will soon be available in both markets.
"For Hong Kong in particular, this arrangement will not only expand the distribution network for Hong Kong's fund industry, but also attract more funds to domicile in Hong Kong, which will help build up Hong Kong's fund manufacturing capabilities and develop it into a full-fledged fund service center," Tsang continued.
He also pledged more measures to develop Hong Kong's asset management industry, in order to foster Hong Kong's position as an international asset management center.
Starting July 1, 2015, regulators from both sides have started accepting applications under the mutual recognition of funds arrangement between the mainland and Hong Kong.
According to the arrangement, qualified mainland and Hong Kong funds may be offered directly to the public in each other's market after obtaining authorization or approval under streamlined procedures.