Luxembourg, China Regulators Push On Mutual Recognition Of Funds

Tom Burroughes

20 June 2014

The China Securities Regulatory Commission will meet with Luxembourg’s Ministry of Finance during a road-show by the latter to Beijing and Shanghai in June to discuss China’s plans to extend mutual recognition of mutual funds to “overseas markets”, Ignites Europe reports.

The CSRC reportedly said last week it plans to “steadily promote mutual recognition of fund products between China and Hong Kong, as well as other overseas markets”.

Undertakings for Collective Investment in Transferable Securities (Ucits) asset managers have access to Hong Kong but they don't have the same kind of access to mainland China yet, the article pointed out.

The Association of the Luxembourg Fund Industry has already met with Chinese regulators to discuss the potential for Luxembourg funds to be distributed directly into China. According to AlFI’s website, as seen by WealthBriefingAsia, Ashmore Investment Management Limited has received approval from the Luxembourg regulator (the CSSF) for the first Luxembourg R-QFII UCITS managed by a R-QFII manager based outside Greater China.

Other European representatives, such as the European Commission and the French Fund Association, have met with Chinese authorities in recent months to discuss the distribution of Ucits funds into mainland China, the report said.