Mainland, HK approve first funds for mutual recognition

Securities regulators in the Chinese mainland and Hong Kong approved the first batch of cross-border mutual funds on Friday, marking further liberalization of the Chinese capital market.

Four mainland and three Hong Kong funds gained the regulatory green light to sell their investment products to investors in each other's markets, according to the China Securities Regulatory Commission.

Officials said the mutual recognition of funds between the mainland and Hong Kong will allow foreign investors to gain greater access to the Chinese stock and bond markets, while enabling foreign asset management firms to tap into the growing wealth held by mainland investors.