What is mutual recognition of funds?
Mutual recognition of funds refers to allowing funds registered overseas and supervised by local regulatory agencies to be publicly sold to local residents. Through mutual recognition of funds, the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission will allow mainland and Hong Kong funds that meet certain conditions to be recognized or licensed according to legal procedures and sold to public investors in the other market.
How do residents of the two places buy mutual funds?
After being registered by the China Securities Regulatory Commission, eligible Hong Kong mutual recognition funds can be entrusted to mainland fund sales institutions for public sale and abide by the laws and regulations on fund sales in the Mainland. Mainland fund investors can apply for Hong Kong mutual recognition fund products in relevant fund sales institutions, and the specific business process is the same as that of mainland fund products.
Why open mutual recognition of funds?
1. On the one hand, the introduction of overseas securities investment funds will provide domestic investors with more abundant investment products, more multi-level investment channels and more diversified investment management services, which will help domestic fund management institutions learn from international advanced investment management experience and promote competition in the fund industry;
2. On the one hand, the overseas sale of domestic funds is conducive to attracting overseas funds to invest in the domestic capital market, providing more convenient investment channels for various overseas investors, and promoting the standardization and internationalization of domestic fund management institutions.