China’s National Financial Regulatory Administration (NFRA) is to actively support mainland insurance funds to participate in mutual access schemes between the mainland and Hong Kong financial markets.
The move will allow mainland insurance institutions to invest in ETFs in Hong Kong through Stock Connect.
“The National 15th Five-Year Plan clearly supports Hong Kong in consolidating and enhancing its status as an international financial centre, strengthening its role as a global offshore renminbi business hub, an international asset and wealth management centre, and an international risk management centre,” Hong Kong Special Administrative Region (HKSAR) CEO, John Lee, said.
“Building on the mature experience of mainland insurance funds investing in Hong Kong's stock market through Stock Connect, the policy measures announced further facilitate mainland insurance companies in diversifying their asset allocation via Hong Kong, while promoting the development of the local ETF market and strengthening its ecosystem. The measures represent the strong support of our country for the development of Hong Kong's capital market and asset management industry, and are of profound significance.”
