Analysing the Positioning of International Asset Managers in the Context of the Mutual Recognition for Funds (MRF) between China and Hong Kong
MRF is a programme which allows Hong Kong and Chinese asset managers to distribute their funds in each other’s jurisdiction. This study examines the objective of the programme, along with its positioning within the overall landscape of political and financial reforms of the People’s Republic of China, including other Asian fund passporting initiatives. The study also analyses the impact of the programme on the Chinese investment fund industry and examines how international asset managers are positioning themselves to react to the upcoming changes and challenges brought about by regulatory shifts such as those presented by MRF.
The aim of this study was to examine the impact of the MRF programme on the Chinese investment fund industry; to investigate how international asset managers are positioning themselves to react to the upcoming changes and to find evidence which supports or not the working hypothesis of the author that “The Mutual Recognition for Funds programme will indeed be used by many international asset managers, but international asset managers will not be able to attract many Chinese investors within the next five years. Furthermore, international asset managers will not only rely on the MRF programme to sell their international investment funds into China, but will also make use of alternative methods to bring their products to the Chinese market.