China says to launch mutual fund recognition with Hong Kong on July 1

[BEIJING] A long-awaited scheme to allow funds domiciled in Hong Kong and China to be sold in each others' market will be launched on July 1, China's securities regulator said on Friday, in a move to facilitate cross-border investment.

Deng Ge, a spokesman for China Securities Regulatory Commission, made the announcement at a weekly news conference in Beijing.

The project is another key step after the landmark Shanghai-Hong Kong stock connect that was rolled out last November, as China accelerates the pace to open up its capital market and internationalise its currency.

Hong Kong and Chinese securities regulators started discussing mutual recognition for fund products in 2012 and reached a preliminary agreement in 2013.

REUTERS