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.
HSBC Global 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. The Fund also has the largest AUM among comparable southbound funds, as of end September 2018*.
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 Global 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 Global 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 Global Asset management and Shanxi Trust.
* Source: Wind, HSBC Jintrust Fund Management Company Limited, data as of end December 2018. AUM ranking is based on the data of share classes for the investors in
Hong Kong under the MRF scheme. AUM data exclude the bond funds, index funds, and the funds without AUM figures in Wind.
MRF northbound funds (for retail investors in Mainland China only)
HSBC Jintrust Large Cap Equity Securities Investment Fund (Class H)
HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund (Class H)