Fund executives put the territory well ahead of mainland Chinese cities and Singapore in this regard, despite certain reservations, finds a survey by BBH due for release today.
Industry participants are questioning the motivation behind and benefits of Hong Kong's new agreement with Switzerland on mutual recognition of funds.
EY has analysed the tax treatment of domestic funds versus foreign products that may be marketed under the Asia Region Funds Passport, to see what progress needs to be made.
Programmes including mutual recognition, Asean CIS, QFII, RQFII and Stock Connect appear to have fallen in favour, while ARFP, QDII, QDLP and QDIE have gained popularity.
Europe’s securities watchdog has recommended extending certain EU passporting rights to alternative fund managers in four Asian markets. But questions need answering and delays are expected.
Thailand signed up to the cross-border scheme this week, AsianInvestor can reveal, but the head of the local securities watchdog says take-up may be slow, at least initially.
Singapore’s regulatory authority has issued a clarification to AsianInvestor explaining why it chose not to sign the Statement of Understanding for the planned fund passport scheme.
Asia has three fund passport schemes in the pipeline - HK-China mutual recognition, Asean and ARFP - which promise to change the landscape of the region's funds industry.
Aberdeen Asset Management's Australia COO says his home market is well prepared on funds automation, but raises this as a consideration under current passporting proposals.
The Asean and ARFP schemes will be complimentary, but the commercial viability of passporting will revolve around China, an AsianInvestor roundtable hears.
The proposed free trade agreement between Korea and Australia is seen as vital if the Asia Region Funds Passport is to succeed. Digital delivery is a major part of passport discussions.
The SFC’s Alexa Lam and CSRC’s Xu Hao discuss the timing of the HK-China passport scheme, indicating the launch will follow the RQFII model and could be imminent.