China's cross-border investment funds sale plan losing fizz

Hong Kong

CHINA'S plan to allow cross-border sales of investment funds between the mainland and Hong Kong appears to have lost momentum after opposition from domestic money managers who fear being overwhelmed by global competitors, industry players say.

Global asset managers, who want to grab a bigger slice of investable money in China, are eagerly awaiting the launch of the so-called mutual fund recognition, or passporting, scheme, which will allow them to sell funds directly in China without having to set up operations in the mainland. But China seems, instead, to be focused on adding a stock-trading link-up between Hong Kong and Shenzhen to its existing Shanghai-Hong Kong connect.