China's securities regulator announced on Friday that it has registered the first batch of Mainland-Hong Kong Mutual Recognition of Funds (MRF).
China Securities Regulatory Commission (CSRC) has registered three Hong Kong funds under the MRF scheme, while the Hong Kong side has registered four mainland funds, the commission said in a press release.
The MRF scheme, launched on July 1, allows qualified funds on either side to offer directly to retail investors in each other's markets after obtaining authorization or approval under streamlined procedures.
The CSRC said it has received 17 applications, and the Hong Kong regulator has received over 30 applications.
"For the next step, we will continue to register more funds for the scheme," the CSRC said.
According to an earlier guideline released by the People's Bank of China and State Administration of Foreign Exchange, only the total MRF amount needs to be monitored, and no approval is needed for the amount by any one institution or product.
The funds raised through trans-market issuance can flow between Hong Kong and the mainland in renminbi and foreign currencies, or they can be changed by agents at banks.
Also on Friday, the Ministry of Commerce issued a notice specifying tax rules for investing in the MRF. Gains obtained through such trading will be exempted from income taxes for mainland retail investors from Dec. 18, 2015 to Dec. 17, 2018.
