Funds need to meet certain basic conditions before they go online. If they cannot be met, they cannot be provided to investors. Mutual recognition funds are mutual funds between Hong Kong and the Mainland, and their requirements are also high. However, some investors still ask whether mutual recognition funds are reliable.

?

The editor’s answer is as follows: What is a mutually recognized fund?

Mutual recognition of funds refers to allowing funds registered overseas and supervised by local regulatory agencies to be sold publicly to local residents.

Excellent overseas funds are expected to be publicly raised locally. Similarly, excellent funds registered and regulated locally are also expected to enter overseas markets.

How are "Mutual Recognized Funds" selected?

On July 1 this year, the "Interim Regulations on the Management of Mutually Recognized Funds in Hong Kong" came into effect. The conditions announced this time adopt the same set of recognition standards for mainland Hong Kong. According to the document, Hong Kong's mutually recognized funds should look like this: 1. Establishment time

: More than 1 year 2. Fund size: 200 million yuan (or equivalent foreign currency) 3. Investment scope: Do not take the mainland market as the main investment direction 4. Sales scale: The sales scale in the guest place shall not exceed the fund asset size in the place of registration 5.

Fund types: stock, hybrid, bond and index (including exchange-traded open-end index funds). According to these requirements, someone has calculated that the number of eligible funds in the mainland is 850, while the eligible fund products in Hong Kong are

100 pieces.

Are mutually recognized funds reliable?

To sum up, the approval process for mutually recognized funds is very strict, and there is almost no chance of escape for investors, so they can buy with peace of mind.