MRF scheme opens up new opportunities

Effective from 1 July 2015, the Mainland-Hong Kong Mutual Recognition of Funds (MRF) scheme allows eligible Mainland China and Hong Kong funds to be distributed in each other’s market through a streamlined vetting process.

The MRF arrangement is China’s first initiative to allow foreign retail funds to be distributed in its domestic market and local retails funds sold outside of Mainland China. Not only has it opened up a development opportunity for Mainland and Hong Kong fund markets, but it also offers a more diversified selection of fund products for investors on both sides.

Our capabilities

HSBC Asset Management has been a pioneer in Chinese asset investing since the launch of our first Chinese equity fund in 1992. We specialize in a comprehensive range of Chinese investment strategies, covering onshore and offshore equities, fixed income, multi-asset, etc..

In 2015, we rolled out our first southbound large cap equity fund under the MRF scheme. The Fund seeks to invest in Mainland China large-cap blue chip companies that are in leading positions in various industries and are expected to generate sustainable profit growth.  

In 2016, we launched our second mainland fund and also the first southbound multi-asset fund under the MRF scheme.

2018 is another milestone for HSBC Asset Management. Being a China expert, we were approved to launch our first northbound fund in Mainland China through the MRF scheme. The Fund is managed by HSBC Asset Management, and its joint venture firm, HSBC Jintrust Fund Management Company Limited, is the master agent. Founded in 2005, HSBC Jintrust is a joint venture formed by HSBC Asset management and Shanxi Trust.