Advanced search

Home > News > Stéphane Karolczuk, Head of Arendt&Medernach Hong Kong Of... >

Stéphane Karolczuk, Head of Arendt&Medernach Hong Kong Office, and Choi Ching-yng, ALFI in China Daily

Published Friday July 10 2015

Fund managers in Hong Kong must stay vigilant about the future competition as the cross-border Mutual Recognition of Funds deal cannot be expected to remain exclusive forever.

Oswald Chan, from China Daily, reports and lets Stéphane Karolczuk, head of office of Arendt&Medernach Hong Kong Office and Choi Ching-yng, Asia representative office head at the Association of the Luxembourg Fund Industry (ALFI), give their point of view on the topic.

Just to explain, the mutual recognition on funds that was recently launched. Investment funds that meet certain eligibility requirements prescribed by the SFC (Securities and Futures Commission) and CSRC (China Securities Regulatory Commission) can be sold reciprocally in either marker under a streamlined process for distribution.


The China Daily article ‘Mutual benefit, singular concern’ cites a Reuters’ report for outlining that Luxembourg last year was pushing for a deal on mutual recognition of investment funds with the Chinese mainland and that if Luxembourg and authorities on the Chinese mainland reached a similar agreement, it would become a direct rivalry for Hong Kong.

However, the Hong Kong government does not believe that such an agreement will be reached in the near future, reassuring the city that it can enjoy the mutual recognition of funds status for a “period of time”.