Mutual recognition faces distribution hurdles: Cerulli

Fund houses may be rubbing their hands at the prospect of a new avenue into China’s market in the form of China-Hong Kong mutual recognition, but first movers are likely to face a distribution bottleneck, argues Cerulli Associates. Foreign banks may not be eager to sell offshore products as they do not look like they can add much value to their fund range, said the Singapore-based research house in a new report. That could result in problems for managers because demand for offsh…