Race is on to launch Hong Kong-domiciled funds
JP Morgan is among fund houses that aim to exploit mutual recognition programme by selling more qualified products on the mainland
Fund houses in the city are racing to introduce Hong Kong-domiciled funds to make sure their products qualify for sale on the mainland under the proposed mutual recognition programme.
"We will have more Hong Kong-domiciled funds because we want to prepare ourselves to sell our fund products in China under the proposed mutual recognition programme, which is going to be a big boost to the Hong Kong fund management industry," Laskowitz said.
Last month, Beijing for the first time endorsed a study of the programme, adding it to the latest round of the Closer Economic Partnership Arrangement.
The programme, for which Hong Kong has lobbied the central government to boost the local fund industry, would mean Hong Kong-domiciled funds could be sold on the mainland and mainland funds in Hong Kong. Securities regulators on the mainland and in Hong Kong are working on detailed criteria before the programme starts.
Only about 300 of the 1,800 or so funds authorised by the Securities and Futures Commission (SFC) are domiciled in the city because most international fund houses domicile their funds in Luxembourg or Dublin for tax or corporate structure reasons.
Laskowitz said JP Morgan had more Hong Kong-domiciled funds than others because it had been operating in the city since the 1970s.