Stock Connect set to clear obstacle in EU

Europe's main funds regulator has introduced a "fast-track" procedure for approving mutual funds that wish to participate in a landmark Shanghai-Hong Kong equity trading scheme.

The announcement, made by the Association of the Luxembourg Fund Industry on Tuesday, comes amid growing industry frustration over European regulatory hurdles that have prevented many asset managers from participating in the Shanghai-Hong Kong Stock Connect program.

Luxembourg's Commission de Surveillance du Secteur Financier will fast-track applications from mutual funds sold to retail investors, also known as UCITS, whose investment policy already permits exposure to China shares and which only need to adapt their existing paperwork, ALFI said.