Securities and Futures Services

The Agreement on Trade in Services covers and consolidates commitments relating to liberalisation of trade in services provided in CEPA and its Supplements and also the Agreement between the Mainland and Hong Kong on Achieving Basic Liberalisation of Trade in Services in Guangdong.

Agreement on Trade in Services
Liberalisation Measures under Cross-border Services (Positive List)
Sectors or Sub-sectors	Financial services Banking and other financial services (excluding insurance) Acceptance of deposits and other repayable funds from the public (CPC81115-81119) Lending of all types, including, inter alia, consumer credit, mortgage credit, factoring and financing of commercial transaction (CPC8113) Financial leasing (CPC8112) All payment and money transmission services (CPC81339) Guarantees and commitments (CPC81199) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following: f1. money market instruments (CPC81339) f2. foreign exchange (CPC81333) f3. derivative products including, but not limited to, futures and options (CPC81339) f4. exchange rate and interest rate instruments, including products such as swaps, forward rate agreements, etc. (CPC81339) f5. transferable securities (CPC81321) f6. other negotiable instruments and financial assets, including bullion (CPC81339) Participation in issues of all kinds of securities (CPC8132) Money broking (CPC81339) Asset management (CPC8119, 81323) Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments (CPC81339 or 81319) Advisory and other auxiliary financial services (CPC8131 or 8133) Provision and transfer of financial information, and financial data processing and related software by providers of other financial services (CPC8131)
Specific commitments	To allow any Mainland-incorporated banking institution established by a Hong Kong bank that meets the following criteria to locate its data centre in Hong Kong: Incorporated in the Mainland on or before 30 June 2008; At the time of its incorporation, its parent bank has already established a data centre in Hong Kong; The data centre for the Mainland business (which should include core systems such as those for customer, accounting and product information) should operate independently; Its board of directors and senior management should assume the ultimate oversight and accountability over the management of the data centre for the Mainland business; and The data centre for the Mainland business should meet the relevant supervisory requirements and be subject to the approval of the relevant Mainland authorities. To develop a more diversified offshore RMB product market and increase channels for two-way fund flows. The authorities of both sides have confirmed the re-signing of the cooperation agreement to mutually recognise professional qualifications for banking professionals, and shall further promote and expand the work on mutual recognition of banking professional qualifications. To simplify the relevant procedures for Hong Kong professionals¹ applying in the Mainland for securities and futures industry qualifications. Hong Kong professionals applying to obtain securities and futures industry qualifications of the Mainland need only to undertake training and pass examination on Mainland laws and regulations; and examination on professional knowledge is not required. To support qualified Mainland securities companies approved by the China Securities Regulatory Commission or other financial institutions engaged in securities activities to set up subsidiaries in Hong Kong according to relevant requirements and operate businesses in accordance with the laws. The timeframe for Mainland securities companies to complete registration for their subsidiaries is extended from six months to one year. To allow the Hong Kong Exchanges and Clearing Limited to set up a representative office in Beijing. To allow Mainland fund management companies approved by the China Securities Regulatory Commission to establish subsidiaries in Hong Kong to operate relevant businesses. To allow subsidiaries set up in Hong Kong by qualified Mainland futures companies in developing business in Hong Kong in accordance with the laws. To explore further lowering of the eligibility requirements for QDII scheme and to increase relevant investment quotas. To deepen the co-operation between the Mainland and Hong Kong in financial services and product development and launch ETF (open-ended index-tracking exchange-traded fund), of which portfolios are constituted by Hong Kong-listed stocks in the Mainland. To continuously promote and enhance the Mainland-Hong Kong Mutual Recognition of Funds scheme. To continuously promote the cross listing arrangement of the Mainland and Hong Kong ETF (i.e. open-ended index-tracking exchange-traded funds). To enhance the variety of products under the Mainland-Hong Kong Stock Connect and allow companies with weighted voting rights structure as listed in Hong Kong to be included as eligible securities under Stock Connect upon fulfilment of certain criteria. To consider extending the scope of eligible products under the mutual market access programme by including REITs (i.e. Real Estate Investment Trusts). To deepen the opening-up of the Mainland securities and futures market and to support Hong Kong institutions' investments in the Mainland securities and futures market by means of the RMB Qualified Foreign Institutional Investor scheme (RQFII) and QFII. To explore promoting RMB bond issuances on the Mainland exchanges by eligible Hong Kong companies. To support eligible Hong Kong financial institutions to conduct direct investment activities in the nine Pearl River Delta municipalities in the Guangdong-Hong Kong-Macao Greater Bay Area, such as establishing, injecting capital into, or becoming a shareholder of financial institutions in the nine Pearl River Delta municipalities in the Guangdong-Hong Kong-Macao Greater Bay Area. To allow financial institutions in China (Guangdong) Pilot Free Trade Zone to, in accordance with relevant regulations, provide services to individual investors in the Pilot Free Trade Zone for investing in stocks, bonds and other negotiable securities in Hong Kong's capital market. To continuously promote and enhance the Cross-boundary Wealth Management Connect Pilot Scheme that supports Mainland residents in the Guangdong-Hong Kong-Macao Greater Bay Area in purchasing wealth management products sold by Hong Kong banks and eligible Hong Kong licensed corporations, through Hong Kong banks and eligible Hong Kong licensed corporations, and Hong Kong residents in purchasing wealth management products sold by Mainland banks and Mainland securities companies, through Mainland banks and Mainland securities companies in the Guangdong-Hong Kong-Macao Greater Bay Area. To support Hong Kong-funded non-bank payment institutions to conduct electronic payment business in the Mainland. To continuously enhance Southbound Trading and Northbound Trading under Bond Connect. To allow Hong Kong-funded banks to take capital guarantee deposits for Mainland insurance companies.
Reserved Restrictive Measures under Commercial Presence (Negative List)
Sector	Financial Services
Sub-sector	Banking and other financial services (excluding insurance) Acceptance of deposits and other repayable funds from the public (CPC81115-81119) Lending of all types, including, inter alia, consumer credit, mortgage credit, factoring and financing of commercial transaction (CPC8113) Financial leasing (CPC8112) All payment and money transmission services (CPC81339) Guarantees and commitments (CPC81199) Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following: f1. money market instruments (CPC81339) f2. foreign exchange (CPC81333) f3. derivative products including, but not limited to, futures and options (CPC81339) f4. exchange rate and interest rate instruments, including products such as swaps, forward rate agreements, etc. (CPC81339) f5. transferable securities (CPC81321) f6. other negotiable instruments and financial assets, including bullion (CPC81339) Participation in issues of all kinds of securities (CPC8132) Money broking (CPC81339) Asset management (CPC8119, 81323) Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments (CPC81339 or 81319) Advisory and other auxiliary financial services (CPC8131 or 8133) Provision and transfer of financial information, and financial data processing and related software by providers of other financial services (CPC8131)
Obligations concerned	National Treatment
Reserved Restrictive Measures	Commercial Presence Hong Kong service suppliers investing in financial institutions engaging in banking business shall be financial institutions or specialised financial institutions, and the relevant conditions being: For setting up a wholly foreign-funded bank, the shareholder shall be a financial institution, and the sole or majority shareholder shall be a commercial bank; for setting up a Chinese-foreign joint venture bank, the Hong Kong shareholder shall be a financial institution, and the sole or majority foreign shareholder shall be a commercial bank; The foreign founding member or strategic investor of a large commercial bank², joint stock commercial bank, urban commercial bank or the Postal Savings Bank of China shall be a financial institution; The foreign founding member or strategic investor of a rural commercial bank, rural cooperative bank, rural credit union or rural bank shall be a bank; The foreign equity investor of a trust company shall be a financial institution; The foreign founding member of a financial leasing company shall be a financial institution or financial leasing company; The major foreign equity investor of a consumer finance company shall be a financial institution; The foreign investor of a money brokerage company shall be a money brokerage company; The foreign strategic investor of a financial asset management company shall be a financial institution. Approval shall be required for investing in financial institutions listed below: Approval is required for Hong Kong service suppliers to invest in large commercial banks, joint stock commercial banks, the Postal Savings Bank of China or urban commercial banks in the Mainland; Approval is required for Hong Kong service suppliers to invest in rural commercial banks, rural cooperative banks, rural credit unions, rural banks or credit companies; Approval is required for Hong Kong service suppliers to invest to establish wholly foreign-funded banks, Chinese-foreign joint venture banks, or foreign bank branches; Approval is required for foreign banks to change the operating capital of foreign bank branches in the Mainland; Approval of the state council authority supervising credit information business is required for a credit information institution to provide credit information services; Approval from the State Internet Information Office, Ministry of Commerce and State Administration for Industry & Commerce shall be required, and the "Licence for foreign institution investing and establishing financial information services company in China" shall be obtained, for establishing a financial information services company; Approval is required for Hong Kong service suppliers to invest in trust companies; Approval is required for Hong Kong service suppliers to invest in financial asset management companies, corporate group finance companies, financial leasing companies, automotive finance companies, money brokerage companies and consumer finance companies. Hong Kong service suppliers investing in financial institutions engaging in banking business shall meet relevant asset size requirements, including specifically: The foreign founding member or strategic investor of a large commercial bank, joint stock commercial bank, urban commercial bank or the Postal Savings Bank of China shall in principle have total assets of no less than US$6 billion at the end of the year immediately before; The foreign founding member or strategic investor of a rural commercial bank, rural cooperative bank, rural bank or credit company shall in principle have total assets of no less than US$6 billion at the end of the year immediately before; the foreign founding member or strategic investor of a rural credit union shall in principle have total assets of no less than US$1 billion at the end of the year immediately before; The outside strategic investor (which itself is a foreign financial institution) of a financial company of an enterprise group shall in principle have total assets of no less than US$1 billion at the end of the year immediately before; The foreign founding member of a financial leasing company shall in principle have total assets of no less than US$1 billion or equivalent amount in convertible foreign currencies at the end of the year immediately before; The foreign strategic investor of a financial asset management company shall in principle have total assets of no less than US$10 billion at the end of the year immediately before. Foreign bank branches established by Hong Kong service suppliers shall not be allowed to offer RMB services to Chinese citizens in the Mainland other than accepting time deposits of no less than RMB500,000; shall not be allowed to conduct businesses restricted to wholly foreign-funded banks or joint venture banks; shall not be allowed to conduct securities or insurance businesses. For a foreign bank branch established by a Hong Kong service supplier, the RMB portion of the total of operating capital and reserves shall be no less than 8% of its RMB risk-weighted assets. The branch of a foreign bank that continues to meet capital adequacy ratio requirements set by its domestic supervisory authorities as well as the banking regulation authorities of the State Council is exempt from the above-mentioned requirement. The branch of a foreign bank shall hold a certain proportion of interest-earning assets as required by the banking regulation authorities of the State Council. Wholly foreign-funded banks, Chinese-foreign joint venture banks and foreign bank branches established by Hong Kong service suppliers shall be required to satisfy prudential requirements for conducting RMB business. Wholly foreign-funded banks, Chinese-foreign joint venture banks or foreign bank branches engaging in interbank lending and borrowing business shall be required to obtain approval of the People's Bank of China for having the qualification to conduct RMB interbank lending and borrowing business. A wholly foreign-funded bank or Chinese-foreign joint venture bank shall borrow or lend no more than 2 times of its paid-in capital; a foreign bank branch shall borrow or lend no more than 2 times of its RMB operating capital. Foreign bank branches established by Hong Kong service suppliers shall not be allowed to engage in the business of acting as a receiving and paying agent for the government's treasury. Hong Kong service suppliers investing in a money brokerage company shall have engaged in money brokerage business for over 20 years, have recorded profit for 2 consecutive years preceding its application, and have global institutional and communication networks necessary for conducting money brokerage business. Foreign institutions shall not be allowed to participate in the establishment of financial asset investment companies as majority shareholders. The form of investment in securities companies includes: the establishment of wholly-owned securities companies; the establishment of joint venture securities companies through joint capital contribution with domestic shareholders in accordance with law; and the conversion of Mainland-funded securities companies into joint venture securities companies according to law by legal transfer and acquisition of shareholding in the Mainland-funded securities companies. (The number of securities companies that are allowed to be invested in through shareholding acquisition by the same Hong Kong-funded financial institution or by various Hong Kong-funded financial institutions which are effectively controlled by the same entity is in line with the national treatment.) Investment by overseas investors in listed Mainland-funded securities companies may be done by way of holding shares in a listed Mainland-funded securities company through securities transactions on a stock exchange, or by establishing a strategic partnership with a listed Mainland-funded securities company and obtaining approval of the China Securities Regulatory Commission for holding shares in a listed Mainland-funded securities company with its approved scope of business remaining unchanged. The overseas shareholders of a securities company shall comply with the Mainland's qualification requirements for overseas shareholders of foreign-invested securities companies and abide by the Securities Law and regulations of the Mainland on acquisition of listed companies as well as change in particulars of securities companies. The form of investment in fund management companies by Hong Kong-funded financial institutions can be made in wholly-owned venture or joint venture. The number of fund management companies that are allowed to be invested in through shareholding acquisition is in line with the national treatment. The overseas shareholders of a fund management company shall comply with the Mainland’s qualification requirements for overseas shareholders of foreign-invested fund management companies and abide by the Securities Investment Fund Law and regulations on change in particulars of fund management companies. When investing in futures companies, the number of futures companies that are allowed to be invested in through shareholding acquisition by the same Hong Kong-funded financial institution or by various Hong Kong-funded financial institutions which are effectively controlled by the same entity is in line with the national treatment. The overseas shareholders of a futures company shall comply with the Mainland’s qualification requirements for overseas shareholders of foreign-invested futures companies and abide by the Futures and Derivatives Law and regulations of the Mainland on acquisitions of listed companies as well as change in particulars of futures companies. Investment in securities investment advisory companies by Hong Kong-funded financial institutions can be made only in the form of joint venture. (The number of Mainland-Hong Kong joint venture securities investment advisory companies that are allowed to be invested in through shareholding acquisition by the same Hong Kong-funded financial institution or by various Hong Kong-funded financial institutions which are effectively controlled by the same entity is in line with the national treatment.) Hong Kong securities companies which satisfy the qualification requirements as overseas shareholders of overseas-invested securities companies, and Mainland securities companies which satisfy the requirements for establishing subsidiaries, are allowed to set up joint venture securities investment advisory companies in the Mainland. The joint venture securities investment advisory company shall be a subsidiary of the Mainland securities company, the scope of business of which shall focus specifically on carrying on securities investment advisory businesses. The percentage of shareholding of the Hong Kong securities company may, at a maximum, reach 49% of the total shareholding of such joint venture securities investment advisory company. In certain reform experiment zones for "piloting financial reforms" as approved by the Mainland, the percentage of shareholding of a Hong Kong-funded securities company which satisfies the relevant requirements for setting up a Mainland-Hong Kong joint venture securities investment advisory company in such company may reach more than 50%. Where Hong Kong shareholders acquire shareholding in Mainland-Hong Kong joint venture securities companies, fund management companies, futures companies or securities investment advisory institutions, capital contribution shall be made in a currency that is freely convertible. For clarity and avoidance of doubt, any foreign bank branch established in the Guangdong Province by a Hong Kong bank can apply to establish "cross-location" sub-branches (i.e. different from the municipality where the relevant branch is located) within the Guangdong Province with reference to the relevant rules in the Mainland for establishing sub-branches. If a wholly foreign-funded bank established in the Mainland by a Hong Kong bank has already established branches in the Guangdong Province, such branches can apply to establish "cross-location" sub-branches (i.e. different from the municipality where the relevant branch is located) within the Guangdong Province with reference to the relevant rules in the Mainland for establishing sub-branches.
Sector	Financial Services
Sub-sector	Other
Obligations concerned	National Treatment
Reserved Restrictive Measures	Commercial Presence Apply national treatment.

In this sector, professionals refer to Hong Kong permanent residents who have been licensed by the Securities and Futures Commission of Hong Kong.

For the purpose of this clause, large commercial banks refer to Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications.

For details about financial cooperation under the Agreement on Economic and Technical Cooperation (Ecotech Agreement), please refer to the Ecotech Agreement.

Rules and regulations promulgated by the Mainland authorities relating to the implementation of commitments under CEPA :

Securities Companies

According to the "Administrative Measures on Foreign-invested Securities Companies" (2020 Revision - Mar 2020) (in Chinese only), a foreign shareholder of a foreign-invested securities company shall meet the following requirements:
1. It is located in a country or region with effective securities laws and regulatory systems, and the relevant financial regulatory institution should have signed a memorandum of understanding on cooperation in securities regulation and maintained an effective cooperative relationship with the China Securities Regulatory Commission (CSRC) or institutions accredited by the CSRC;
2. It is a financial institution legally established in the country or region where it is located; and its financial indicators in the recent 3 years should comply with the legal stipulations and the requirements of the regulatory institution of the country or region where it is located;
3. It has operated securities businesses for 5 years or more, and have not been seriously punished by the regulatory institution, or the administrative and the judicial bodies in the country or region where it is located in the recent 3 years; and it is not under investigation by the relevant authorities on suspicion of any major violation of laws or regulations;
4. It has sound and effective internal controls;
5. It has good international reputation and business performances; its scale, income and profit in the recent 3 years should rank among the best in the world, and its long-term credit in the recent 3 years should be maintained at a high level as well;
6. It is able to meet other prudential conditions prescribed by the CSRC.
According to the "Regulation related to the Implementation of Supplement X to CEPA to Further Expand the Scope of Liberalization of Securities Institutions" (CSRC - Aug 2015) (in Chinese only), a Hong Kong-funded financial institution applying to establish joint venture securities companies shall meet the relevant requirements for foreign shareholders of foreign-invested securities companies as stipulated by the CSRC and the following criteria:
1. The applicant should be a licensed financial institution or financial holding company registered in Hong Kong; its headquarter should also be located in Hong Kong;
2. If the controlling shareholder or actual controller of the applicant is a financial holding company or financial institution, it should meet one of the following three criteria as well:
  1. The controlling shareholder or actual controller of the applicant should be registered in Hong Kong; its headquarter should also be located in Hong Kong;
  2. The applicant has carried out public offerings of shares and is listed in Hong Kong; moreover, more than 50% of its earnings before taxes in the recent 3 years come from Hong Kong, or more than 50% of its senior management staff are permanent residents of Hong Kong;
  3. The controlling shareholder or actual controller of the applicant has carried out public offerings of shares and is listed in Hong Kong; moreover, more than 50% of the listed company's operating revenues or earnings before taxes are contributed by the applicant.
According to the announcement of CSRC (in Chinese only), the restriction on the percentage of shareholding of foreign investment for securities companies is cancelled starting from 1 April 2020.
For details, please refer to:

Securities Investment Advisory Companies

Hong Kong securities companies which satisfy the qualification requirements as foreign shareholders of foreign-invested securities companies, and Mainland securities companies which satisfy the requirements for establishing subsidiaries, are allowed to set up joint venture securities investment advisory companies in the Mainland. According to the "Administrative Measures on Foreign-invested Securities Companies" (2020 Revision - Mar 2020) (in Chinese only), a foreign shareholder of a foreign-invested securities company shall meet the following requirements:
1. It is located in a country or region with effective securities laws and regulatory systems, and the relevant financial regulatory institution should have signed a memorandum of understanding on cooperation in securities regulation and maintained an effective cooperative relationship with the CSRC or institutions accredited by the CSRC;
2. It is a financial institution legally established in the country or region where it is located; and its financial indicators in the recent 3 years should comply with the legal stipulations and the requirements of the regulatory institution of the country or region where it is located;
3. It has operated securities businesses for 5 consecutive years or more, and has not been seriously punished by the regulatory institution, or the administrative and the judicial bodies in the country or region where it is located in the recent 3 years; and it is not under investigation by the relevant authorities on suspicion of any major violation of laws or regulations;
4. It has sound and effective internal controls;
5. It has good international reputation and business performances; its scale, income and profit in the recent 3 years should rank among the best in the world, and its long-term credit in the recent 3 years should be maintained at a high level as well;
6. It is able to meet other prudential conditions prescribed by the CSRC.
For Hong Kong-funded securities companies that wish to establish joint-venture securities investment advisory companies and hold 50% of shares or more in certain reform experiment zones for "piloting financial reforms" as approved by the Mainland, please also refer to the "Regulation related to the Implementation of Supplement X to CEPA to Further Expand the Scope of Liberalization of Securities Institutions" (CSRC - Aug 2015) (in Chinese only).
For details, please refer to:

Fund Management Companies

According to "Measures for the Supervision and Administration of Publicly Offered Securities Investment Funds Administrators" (Decree of the CSRC No. 198 - May 2022) (in Chinese only), a foreign shareholder of a foreign-invested fund management company shall meet the following requirements:
1. It is a financial institution or an institution that administers financial institutions with financial assets management experiences that is established according to the laws of the country or region where it is located. It should exist lawfully and continuously, and should have a sound and effective internal control mechanism. Its major regulatory indicators in the recent 3 years should comply with the legal stipulations and the requirements of the regulatory institutions of the country or region where it is located;
2. It is located in a country or region with effective securities laws and regulatory systems, and the relevant financial regulatory institution should have signed a memorandum of understanding on cooperation in securities regulation and maintained an effective cooperative relationship with the CSRC or institutions accredited by the CSRC;
3. It has good international reputation and business performances; the scale, income, profit, market share and other indicators of its financial assets management business in the recent 3 years should rank among the best in the world, and its long-term credit in the recent 3 years should be maintained at a high level as well;
4. It has aggregate shareholding or equity ratio (whether held directly or indirectly) in accordance with the state's arrangements for opening up its securities sector;
5. It is able to comply with the laws and administrative regulations and meet the other conditions as prescribed by the CSRC upon the approval of the State Council.
According to the announcement of CSRC (in Chinese only), the restriction on the percentage of shareholding of foreign investment for fund management companies is cancelled starting from 1 April 2020.
For details, please refer to:
- "Measures for the Supervision and Administration of Publicly Offered Securities Investment Funds Administrators" (Decree of the CSRC No. 198 - May 2022) (in Chinese only)
- "Provisions on Issues Concerning the Implementation of the Measures for the Supervision and Administration of Publicly Offered Securities Investment Funds Administrators" (Circular of the CSRC No. 33 - May 2022) (in Chinese only)

Futures Companies

A foreign shareholder of a futures company with 5% of direct shares or more should meet the relevant requirements as stipulated in "Supervision and Administrative Measures on Futures Company" (2019 Revision - Jun 2019) (in Chinese only). For example, it should be a financial institution established in accordance with the laws of the country or region where it is located and have existed lawfully and continuously. Moreover, it should fulfil the relevant capital requirements (for major shareholder: paid-in capital and net assets should not be less than RMB 100 million; for controlling shareholder and the largest shareholder: net capital should not be less than RMB 500 million). Also, according to the "Administrative Measures on Foreign-invested Futures Companies" (Decree of the CSRC No. 149 - Aug 2018) (in Chinese only), it should meet the following requirements:
1. It has operated businesses for consecutive 5 years or more, and has not been seriously punished by the regulatory institution, or the administrative and the judicial bodies in the country or region where it is located in the recent 3 years;
2. It has a management with good professional quality and management ability;
3. It has a robust internal control system and risk management system;
4. It has good international reputation and business performances; its scale, income and profit in the recent 3 years should rank among the best in the world, and its long-term credit in the recent 3 years should be maintained at a high level as well;
5. It is able to meet other prudential conditions prescribed by the CSRC.
According to the announcement of CSRC (in Chinese only), the restriction on the percentage of shareholding of foreign investment for futures companies is cancelled starting from 1 January 2020.
For details, please refer to:

Securities and Futures Practitioners

CEPA has simplified the relevant procedures for Hong Kong professionals applying in the Mainland for securities and futures industry qualifications. Hong Kong professionals (which refer to the permanent residents of the Hong Kong Special Administrative Region holding (or having held within the past 3 years) relevant licenses issued by the Hong Kong Securities and Futures Commission (SFC)) only have to pass the examination on Mainland laws and regulations; it is not necessary for them to pass the examination on professional knowledge. For details, please refer to the website of Securities Association of China and the Hong Kong Securities and Investment Institute.

Mutual Recognition of Funds

According to the "Provisions on Administration of Mutually Recognised Hong Kong Funds" (Circular of the CSRC No.17 – Dec 2024) (in Chinese only), to be distributed publicly in the Mainland, a recognised Hong Kong fund shall be registered with the CSRC and meet the following requirements:
1. It is established and operating in Hong Kong in accordance with Hong Kong laws, publicly sold upon the approval of the SFC, and subject to regulation by the SFC;
2. It has a manager registered and operating in Hong Kong who is a holder of the Hong Kong asset management licence and was not subject to any major punishment imposed by the SFC within the recent 3 years or since its establishment; has not delegated its investment management functions to institutions of other countries or regions, unless the delegated institution and the manager belong to the same group, and the relevant securities regulatory institution in the country or region where the delegated institution is located has signed a memorandum of understanding on cooperation in regulation and maintained an effective cooperative relationship with the CSR;
3. It adopts the trusteeship system, and has a trustee or custodian that meets the qualifications stipulated by the SFC;
4. The type of fund is conventional stock, mixed type, bond type, index type (including exchange-traded funds) or other types of funds as approved by the CSRC;
5. It is established for at least 1 year, with not less than RMB200 million (or its equivalent in foreign currency) assets under management; it should not invest primarily in the Mainland market, and the value of shares/units in the fund sold to investors in the Mainland shall not exceed 80% of the value of the fund’s total assets.
For details, please refer to:

Exchange-traded Funds

Eligible exchange-traded funds (ETFs) are included in mutual stock market access between the Mainland and Hong Kong (Stock Connect) in July 2022. Mainland and Hong Kong investors may trade eligible stocks and ETFs listed on each other's exchanges through local securities firms or brokers. For details, please refer to:

For other details, please refer to:

"Circular on Deepening the Reform of 'Separating Operating Permits and Business Licenses' to Further Boost the Vitality of Market Entities for Development" (May 2021) (in Chinese only)

Enquiries concerning the application procedures and requirements for the provision of securities and futures services in the Mainland can be directed to:

China Securities Regulatory Commission

2025-03-21

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