Hong Kong will pay 70% of expenses incurred in setting up open-ended fund companies and property trusts via a new grant that is open to firms incorporated or re-domiciled in the city, and locally-listed real estate investment trusts with a minimum market capitalisation of HK$1.5 billion (US$192 million).
The HK$270 million grant was announced in Hong Kong’s 2021/2022 budget on February 24.
The Securities and Futures Commission (SFC) outlined the eligibility and other details in a statement on May 10.
“It covers 70% of eligible expanses paid to Hong Kong-based service providers, subject to a cap of HK$1 million per [open-ended fund company] and HK$8 million per REIT,” the regulator says.
Hong Kong and Thai securities regulators have signed an agreement paving the way for the launch of a cross-border fund distribution scheme between the two jurisdictions.
The Mutual Recognition of Funds (MRF) will allow locally-domiciled funds in Hong Kong and Thailand to be distributed in each other’s markets. It’s scheduled to be launched within six to 12 months.
The agreement “establishes a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of eligible Hong Kong and Thai funds”, Hong Kong’s Securities and Futures Commission (SFC) and the Securities and Exchange Commission of Thailand (SEC) say in a joint statement on January 20.