A revised regulatory framework for the Chinese mainland-Hong Kong mutual fund recognition mechanism went into effect on Thursday (Jan. 2), aimed at better meeting the cross-border wealth management needs of investors on both sides.
Thursday marks the first trading day under the new rules, which experts predict will significantly expand the variety and quantity of mutual fund options available to investors.
Under the new regulations, the sales quota for compliant fund products from the mainland and Hong Kong has increased from 50 percent to 80 percent in each other's markets. Schroders Investment Management Limited has indicated that this policy change will substantially enhance its quota for selling funds across the mainland.
"We will continue to strengthen our investment footprint in China's asset management industry. At the same time, we will bring more of Schroders' global resources and advantages to China," said Shen Qiang, head of Schroders' wealth management business in China.
The new rules expand the types of mutual fund products available for recognition, allowing for "other fund types recognized by China Securities Regulatory Commission (CSRC)" in addition to the existing categories of conventional equity, mixed, bond, and index funds.
The revised regulations also allow mutual recognition of fund investment management functions to be delegated to overseas affiliates within the group.
On December 20, 2024, both the CSRC and Hong Kong's Securities and Futures Commission (SFC) announced new policies for mutual fund sales, which relaxed the types and scales of local funds that can be sold in each other's markets.
The CSRC noted that the mutual fund recognition mechanism between the mainland and Hong Kong has been in place since July 1, 2015. Over the past nine years, the initiative has progressed smoothly, resulting in an increasingly diverse range of mutual fund products available for investors.
New regulations for mainland-Hong Kong fund recognition mechanism takes effect
The Urumqi–Yuli Expressway, which traverses the Tianshan Mountains in northwest China's Xinjiang Uygur Autonomous Region, opened to traffic on Friday after more than five years of construction, significantly enhancing regional connectivity and enabling faster, more efficient movement of goods and services across the region.
The expressway is a core component of the G0711 national highway network, spanning 324.7 kilometers.
Stretching 2,500 kilometers, the Tianshan Mountains span central Xinjiang, separating Urumqi, the largest city in the north, from Korla, the largest city in the south. With the opening of the expressway, travel time between these two cities is reduced from seven hours to about three hours.
As a key component of the expressway and the world's longest expressway tunnel, the 22.13-km Tianshan Shengli Tunnel officially opened to traffic on the same day.
The tunnel's construction incorporated multiple cutting-edge technologies and innovations, including advanced survey and design methods for ultra-long tunnels and intelligent construction techniques.
"We have established a relatively systematic, comprehensive, and highly efficient management system for major engineering technological innovation across the entire expressway, and have accumulated extensive construction and management experience in delivering mega-projects under extreme environmental conditions," said Song Hailiang, chairman of the China Communications Construction Group.
The expressway connects Urumqi with the northern city belt and the southern urban clusters of Xinjiang, linking the Junggar Basin and the Tarim Basin. It enables rapid transportation between Urumqi, Kashgar, and Khorgos, strengthening Xinjiang’s role as a strategic hub for both the domestic market and international trade.
"With the expressway now operational, business opportunities are flowing in, and many inland companies are coming to sign agreements with us," said Yu Ruihong, chairwoman and general manager of the Xinjiang Ruiyuan Dairy.
"The Urumqi–Yuli Expressway significantly improves Xinjiang's connectivity with the eastern coastal regions and the New International Land–Sea Corridor, supporting the development of a modern, comprehensive, three-dimensional transportation network and high-quality Belt and Road cooperation," said Zhou Rongfeng, director general of the Highway Bureau of the Ministry of Transport.
Urumqi-Yuli Expressway boosts Xinjiang's trade connectivity, strengthens regional integration
