Hong Kong-based Value Partners has received approval from the China Securities Regulatory Commission to launch its flagship fund, the Value Partners Classic Fund, in China under the Mutual Recognition of Funds (MRF) scheme.
The product is the firm’s first offering under the MRF scheme.
The firm also submitted an application for another MRF fund this year, the High Dividend Stocks Fund, which is still pending approval by the regulator.
Value Partners’ distribution partner in China is Tianhong Asset Management.
Product push
Value Partners also has a private fund management (PFM) licence in China. The firm has launched four onshore funds to the mainland’s qualified investors since it received its licence in November last year.
Elsewhere, Value Partners is expected to bring a multi-asset technology-focused product to Hong Kong next year.
The firm also plans to introduce a fund focused on the Greater Bay area. The area comprises Hong Kong, Macau and nine mainland cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Zhaoqing, Huizhou and Jiangment.
MRF outflows
Hong Kong-domiciled fund sales are in the red. Year-to-end October total net outflows were RMB 3.15bn (£361m, $460m €399m), according to records from China’s State Administration of Foreign Exchange.
Nonetheless, foreign players continue to register new products. A number of firms have submitted eight applications this year to sell their funds in the mainland, with Amundi being the latest.
In total, MRF funds sold in China have seen net sales of around RMB 9.3bn since the programme began in 2015.
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