The Hong Kong Investment Funds Association (HKIFA) has suggested enhancing the mutual recognition of funds scheme between the mainland and Hong Kong. It called for removing a requirement for northbound funds, which states that the value of units sold to mainland investors should not exceed 50% of the fund's total assets. Based on the survey of 31 fund management companies in January and February this year, HKIFA found that 31% of fund managers chose removing the HK domicile requirement as topping the list of changes needed for the MRF scheme, while nearly 20% thought removing the 50/50 sales restriction as the most pressing issue. Another 20% believed a shorter approval process was the top priority. The organisation believed that if these enhancements are taken on board, much greater potential for the scheme can be unleashed.
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