BASEL: Switzerland and Hong Kong have signed a deal which will allow eligible mutual funds to be distributed in each other’s markets through a streamlined vetting process.
Hong Kong’s Securities and Futures Commission (SFC) and the Swiss Financial Market Supervisory Authority (Finma) signed the formal Mutual Recognition of Funds (MRF) and Asset Managers memorandum on Friday to provide a framework for the exchange of information and regulatory cooperation in relation to the cross-border offering of public funds. The deal came just ahead of Monday’s official start of the new Hong Kong-Shenzhen Stock Connect link. The Stock Connect agreement means that for the first time international investors will be able to trade stocks listed in the southern Chinese city, which is home to many more technology companies and start-ups than Shanghai. It also represents a further liberalisation of China’s capital markets.
