Many foreign fund managers are pinning their China distribution strategies on the WFOE scheme. But the programme's limitations pose familiar problems for scaling the business.
Chinese regulators are putting up unnecessary barriers to fund managers wanting to take advantage of mutual recognition of funds between Hong Kong and the mainland, believe industry experts.
Regulators have approved a scheme to allow funds to be distributed between Hong Kong and Britain. We asked four funds experts what the prospects are for this new arrangement.
The country’s trial rules on pension products should encourage Hong Kong managers to reconsider opportunities to sell funds through the mutual recognition scheme.
But it may be some time before China inks its own cross-border funds agreement with another country.
Harvest Global Investments has qualified for the Switzerland-Hong Kong mutual recognition of funds scheme, but the hard work is to come – and it will take time.