Blockhead’s Post

The China Securities Regulatory Commission (CSRC) and Hong Kong Securities & Futures Commission (SFC) will be implementing new measures to enhance the Mainland-Hong Kong Mutual Recognition of Funds (MRF Scheme), including increasing the allowable limit of funds sold to investors in host market from 50% to 80% for recognised fund, and allowing funds to delegate investment management functions outside of home market. Read - https://lnkd.in/gq2q4eNd follow Caproasia | Driving the future of Asia The China Securities Regulatory Commission (CSRC) and Hong Kong Securities & Futures Commission (SFC) will be implementing new measures to enhance the Mainland-Hong Kong Mutual Recognition of Funds (MRF Scheme), including increasing the allowable limit of funds sold to investors in host market from 50% to 80% for recognised fund, and allowing funds to delegate investment management functions outside of home market.  Hong Kong SFC (14/6/24): “The Securities and Futures Commission (SFC) welcomes the public consultation paper published today by the China Securities Regulatory Commission (CSRC) on proposed rule amendments for implementing the enhancements of the Mainland-Hong Kong mutual recognition of funds (MRF) scheme. The draft proposals in the CSRC’s consultation paper include relaxing the sales restrictions for recognised Hong Kong funds in the Mainland and allowing the delegation of investment management functions of recognised Hong Kong funds to overseas asset management companies within the same group. Based on the principle of reciprocity, the SFC will also relax the relevant restrictions on recognised Mainland funds accordingly (Notes 1 and 2).  Enhancing the MRF scheme is one of the five measures announced earlier by the CSRC on the Mainland’s capital market cooperation with Hong Kong. The SFC will continue to work closely with the CSRC to formulate and implement the measures. Details and the launch date of the enhancements will be announced in due course. Hong Kong SFC CEO Julia Leung:  “This would address a longstanding wish of asset managers in Hong Kong for the scheme to be more flexible and to provide more diversified product choices to Mainland investors as well as injecting new impetus into the continuous development of the MRF scheme.” Securities and Futures Commission (SFC)

The China Securities Regulatory Commission (CSRC) and Hong Kong Securities & Futures Commission (SFC) will be implementing new measures to enhance the Mainland-Hong Kong Mutual Recognition of Funds (MRF Scheme), including increasing the allowable limit of funds sold to investors in host market from 50% to 80% for recognised fund, and allowing funds to delegate investment management functions outside of home market. Read - https://lnkd.in/g3QwVsux follow Caproasia | Driving the future of Asia The China Securities Regulatory Commission (CSRC) and Hong Kong Securities & Futures Commission (SFC) will be implementing new measures to enhance the Mainland-Hong Kong Mutual Recognition of Funds (MRF Scheme), including increasing the allowable limit of funds sold to investors in host market from 50% to 80% for recognised fund, and allowing funds to delegate investment management functions outside of home market.  Hong Kong SFC (14/6/24): “The Securities and Futures Commission (SFC) welcomes the public consultation paper published today by the China Securities Regulatory Commission (CSRC) on proposed rule amendments for implementing the enhancements of the Mainland-Hong Kong mutual recognition of funds (MRF) scheme. The draft proposals in the CSRC’s consultation paper include relaxing the sales restrictions for recognised Hong Kong funds in the Mainland and allowing the delegation of investment management functions of recognised Hong Kong funds to overseas asset management companies within the same group. Based on the principle of reciprocity, the SFC will also relax the relevant restrictions on recognised Mainland funds accordingly (Notes 1 and 2).  Enhancing the MRF scheme is one of the five measures announced earlier by the CSRC on the Mainland’s capital market cooperation with Hong Kong. The SFC will continue to work closely with the CSRC to formulate and implement the measures. Details and the launch date of the enhancements will be announced in due course. Hong Kong SFC CEO Julia Leung:  “This would address a longstanding wish of asset managers in Hong Kong for the scheme to be more flexible and to provide more diversified product choices to Mainland investors as well as injecting new impetus into the continuous development of the MRF scheme.” Securities and Futures Commission (SFC)

🚀 The Securities and Futures Commission (SFC) supports initiatives from the Chief Executive's Policy Address aimed at enhancing Hong Kong's status as a leading international financial centre.   📅 Kelvin Wong Tin-yau will succeed Tim Lui as SFC Chairman on October 20, 2024.   Key initiatives include:   Strengthening Hong Kong’s role as a gateway to Mainland China Improving market access and offshore renminbi (RMB) business Attracting major enterprises to list in Hong Kong Supporting Fintech innovation and regulating virtual assets Collaborating with Belt and Road sovereign funds and launching ETFs in the Middle East These efforts will bolster Hong Kong as a global asset and wealth management hub. Learn more: https://lnkd.in/gKuchWde     #HongKong #SFC #Finance #WealthManagement #Fintech #Investment #RMB    

On 22 December 2023, the Securities and Futures Commission (the “SFC”) published a Circular on SFC-authorised funds with exposure to virtual assets (the “Circular”) to set out the requirements that the SFC would consider in authorising investment funds with exposure to virtual assets (“VA”) of more than 10% of their net asset value (“NAV”) for public offerings in Hong Kong. This Circular supersedes the circular on VA futures exchange traded funds (“ETFs”) issued on 31 October 2022. Our Partner Rodney Teoh shed lights on the expectations and requirements that the SFC would consider when approving funds. Read the full article here: https://lnkd.in/gGVhZa4C #swhk #swcorporatefinance #hongkong #lawfirm #virtualasset #funds

The European Council has adopted significant regulatory updates for alternative investment fund managers and standard EU investment funds, aligning with the #CapitalMarketsUnion (CMU) agenda. These reforms are set to enhance the European financial markets by improving investor protections and modernising the management of diverse investment funds, including hedge funds, private equity, and #UCITS. The legislation introduces crucial advancements in liquidity management, frameworks for loan-originating funds, and supervisory measures, underscoring the EU's commitment to a more integrated and resilient capital market. https://lnkd.in/deCiKskn

T+1 creates opportunity for Northern Trust to add an Asia Investment manager to outsource their trading in light of T+1 challenges for International Investors into the North American markets https://lnkd.in/gfnPtSum

China Securities Regulatory Commission on Friday published rules to regulate mutual fund trading fees, set to take effect on July 1, 2024, which marks the completion of the second phase of the fee reform initiatives in the country's mutual fund industry. According to the calculations, the total annual stock trading commissions for mutual funds will be reduced by 38%. The measures taken in the first two phases of the fee reform are projected to save investors approximately CNY 20 billion ($2.76 billion) annually in costs. The work by the China Securities Regulatory Commission (CSRC) is a direct response to the nine guidelines recently unveiled by the country’s cabinet, which aim to mitigate risks in the capital markets. The proposed revisions are also expected to enhance the protection of investors’ legal rights. The CSRC’s push for the revamp also follows its on-site inspections of several mutual-fund companies in mid-March amid efforts to strengthen management in the country’s $3.8 trillion mutual-fund industry. In 2023, 140 Mutual-fund companies across China saw their management fees slide by 7.6% year on year to CNY 133.3 billion (US$18.40 billion). In the next step, the CSRC will focus on the distribution of mutual funds and further standardize the subscription and redemption rates and other fees in mutual funds sales. The relevant measures are expected to be implemented by the end of 2024.#China #stockmarket #regulator #mutualfunds

The CFTC's new proposed regulations under the Commodity Exchange Act will be of particular interest to futures commission merchants and their customers, including institutional investors and their investment managers. In this the third post in his BR Derivatives Report series, my colleague Andrew Cross provides background information about the nature of the relationship between institutional investors and their investment managers, since that relationship is one of the primary reasons for the Proposed Rule in the first instance. #derivatives #cftc #cea #fcm #investmentmanagement

Brunei BIBD Securities & Singapore-based Lion Global Investors with $52 billion AUM have launched the first Shariah-compliant enhanced liquidity fund domiciled in Singapore & the also the first mutual fund managed in Brunei with $46.5 million AUM (Lion-BIBDS Islamic Enhanced Liquidity Fund), with the new liquidity fund to preserve capital & enhance income by investing in global Shariah-compliant short-term fixed income instruments including Islamic deposits, money market instruments & Sukuk. Read - https://lnkd.in/gk4DssxN follow Caproasia | Driving the future of Asia Brunei BIBD Securities & Singapore-based Lion Global Investors with $52 billion AUM have launched the first Shariah-compliant enhanced liquidity fund domiciled in Singapore & the also the first mutual fund managed in Brunei with $46.5 million AUM (Lion-BIBDS Islamic Enhanced Liquidity Fund), with the new liquidity fund to preserve capital & enhance income by investing in global Shariah-compliant short-term fixed income instruments including Islamic deposits, money market instruments & Sukuk approved by the Shariah advisory body of BIBDS.  The Lion-BIBDS Islamic Enhanced Liquidity Fund was soft-launched in 2024 March to accredited investors, with the USD share class now available to all investors, and SGD-hedged class will be available on 1st August 2024. Kwok Keng Han, Chief Marketing Officer of Lion Global Investors: “We expect this Fund to be well-received because of its value proposition – having sukuk and combining it with Islamic deposits and money market instruments offers investors the benefit of stable returns in a Shariah-compliant portfolio. Furthermore, we see good demand prospects stemming from the lack of Shariah-compliant liquidity solutions in Southeast Asia.  The addition of the Lion-BIBDS Islamic Enhanced Liquidity Fund brings a differentiated offering to Lion Global Investors’ full suite of liquidity solutions, which now has an AUM of over SG$4.4 billion (US$3.2 billion), as of 30 June 2024. Liquidity solutions have always been popular among our clients, and they are now seen as particularly attractive in the wake of rising interest rates and inflation ... ... Jason Wong, Managing Director of BIBD Securities: “This strategic partnership not only showcases BIBD Securities as a major regional player in Shariah-compliant investments but also reinforces our shared vision with Lion Global Investors to deepen innovation in the Islamic finance space. The goal is to expand our range of products and effectively bridge regional investors with Shariah-compliant opportunities ... ... BIBD Bank Islam Brunei Darussalam Lion Global Investors keng han Kwok

Japan Nomura Holdings is facing $150,000 fine for manipulation of 10-year Japan Government Bond (JCB) Futures by a trader in 2021 March, with theNomura trader placing large orders with no intention to buy or sell.  Nomura is Japan largest brokerage & investment bank.  Read - https://lnkd.in/g8HFAZDT follow Caproasia | Driving the future of Asia Japan Nomura Holdings is facing $150,000 fine for manipulation of 10-year Japan Government Bond (JCB) Futures by a trader in 2021 March, with theNomura trader placing large orders with no intention to buy or sell.  Nomura is Japan largest brokerage & investment bank.  Japan Securities and Exchange Surveillance Commission (25/9/24): “The Securities and Exchange Surveillance Commission, today, made a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency that an administrative monetary penalty payment order be issued in regard to market manipulation by Nomura Securities Co., Ltd. (Corporate Number: 6010001074037, “Nomura”) pursuant to Article 20(1) of the Act for Establishment of the Financial Services Agency. This recommendation is based on the findings of an investigation into market manipulation, whereby the following violation of laws and ordinances was identified … … Nomura is a broker-dealer that has been registered with the Commissioner of the Kanto Local Finance Bureau as a Type I Financial Instruments Business operator.   Nomura, through its trader during the course of his duties, engaged in manipulative trading typically known as “layering” in 10-year Japanese Government Bond Futures in March 2021 (“JGB Futures”) listed on the Osaka Exchange (“OSE”) for the purpose of inducing others to buy or sell JGB Futures during the period from 8:45:49 a.m. to 2:16:59 p.m. on March 9, 2021.  Specifically, Nomura bought a total of 462 units at a lower price while placing a total of 2,466 unit sell orders layered at the best offer or inferior prices, and it also sold a total of 462 units at a higher price while placing a total of 1,619 unit buy orders layered at the best bid or inferior prices.  This constituted a series of derivative transactions that would potentially mislead others into believing that derivative transactions are thriving and cause fluctuations in prices of the financial instrument on the OSE.  The act by Nomura was found to constitute “a series of purchase and sales of securities, etc.” and “make an offer” conducted “in violation of Article 159(2)(i)” as stipulated under Article 174-2(1) of the Financial Instruments and Exchange Act (“FIEA”). Pursuant to the FIEA, the amount of the administrative monetary penalty applicable to the above violation is a total of 21,760,000 yen.” Nomura