BEIJING, Dec. 25 (Xinhua) -- China Securities Regulatory Commission (CSRC) announced recently to raise the sales proportion cap on northbound products of the mutual recognition of funds (MRF) scheme from January 1, 2025, reported Xinhua Finance.
CSRC made the revision herein together with others in its recently-amended rules for northbound MRF products or Hong Kong-registered investment funds that can be sold in the Chinese mainland upon meeting certain requirements.
From the beginning of 2025, CSRC will allow a maximum of 80 percent sales, instead of the past 50 percent, of a northbound MRF product in the Chinese mainland.
Apart from this, restrictions over sub-licensing of the northbound MRF products' investment management functions were appropriately loosened.
Under the new rules, such functions are permitted to be sub-licensed to overseas affiliates of a group company to which the management institution of a northbound MRF product also belongs to.
In an effort to better protect investors at home, the sub-licensed institutions are required to be located in countries or regions that have signed regulatory cooperation memorandums of understanding and maintained effective regulatory cooperation with CSRC.
Generally, northbound MRF products here refer to unit trusts, mutual funds or other investment programs established, operated, and publicly sold in Hong Kong Special Administrative Region under its laws and approved for sale in the Chinese mainland by the CSRC.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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