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Clifford Chance

Clifford Chance


The Offering of Hong Kong Funds in the Mainland under the Mutual Recognition of Funds

29 May 2015

On 22 May 2015, the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) jointly announced the decision to embark on the long-awaited mutual recognition of funds scheme (MRF). 

MRF will be implemented on 1 July 2015, and its initial quota is set at RMB300 billion for each of the Hong Kong and Mainland funds.  From China's perspective, the MRF represents a big step to open up its capital market and to further its ambition to introduce international competition with a view to developing domestic fund management institutions.  Along with the announcement, CSRC and SFC respectively issued the Provisional Rules for Recognised Hong Kong Funds (CSRC Rules) and the Mutual Recognition of Funds between the Mainland and Hong Kong (SFC Circular) which set out the principles and the mode for operating the MRF.  This briefing aims to provide an overview of the key features of the MRF and focuses in particular on the CSRC Rules which regulate the offering of Hong Kong funds in the Mainland (i.e. the People's Republic of China).  Please note that a separate briefing would be issued in due course to address and discuss the offering of Mainland funds in Hong Kong under the MRF.

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