The Securities and Futures Commission’s Executive Director of Investment Products, Cai Fengyi, announced that Hong Kong funds received a net inflow of 8.2 billion yuan in the first four months of this year, surpassing last year’s full-year inflow of 5.9 billion yuan and the 7.2 billion yuan net inflow in 2019 before the pandemic.
Fengyi stated that the sales ratio of mutual recognition funds to mainland China has been increased from 50% to 80%. With this relaxation, the maximum sales volume of recognized Hong Kong funds to mainland Chinese clients will be four times the fund management scale. As of the end of March, over 70 SFC-recognized funds registered in Hong Kong meet the requirements for mutual recognition, with total assets under management reaching 258 billion yuan.
Moreover, she highlighted that since the launch of “ETF Connect” in July 2022, ETFs accounted for 14% of the main board trading volume in the first quarter of this year.