Selling process

Mutual recognition of funds
Product features

The sale and distribution of Recognised Mainland Funds in Hong Kong are the same as any other SFC-authorised funds. They must be conducted by intermediaries properly licensed by or registered with the SFC. The sale and distribution of Recognised Mainland Funds must comply with the applicable Hong Kong laws and regulations relating to distribution of funds. Investor should note that fees and expenses (eg bank charge) may be incurred when investing in or dealing with units of the Recognised Mainland Funds.

Intermediaries distributing investment products should act in the best interest of the clients. When recommending or soliciting a client to purchase an investment product, the intermediaries should ensure the suitability of the recommendation or solicitation for the client is reasonable in all the circumstances.

All advertisements of the Recognised Mainland Funds shall comply with applicable Hong Kong laws and regulations. Furthermore, the management company of the Recognised Mainland Funds should appoint a firm in Hong Kong as its representative to handle the affairs in Hong Kong, such as subscription and redemption applications, and making the constitutive documents of the Recognised Mainland Funds available for inspection by the general public in Hong Kong.

Select suitable products for yourself

While Recognised Mainland Funds will widen the spectrum of investment products that are available to investors in Hong Kong, you should carefully select investment products that are suitable to you, based on your personal circumstances such as investment objectives, horizon, risk tolerance and fully understand the features and risks of the Recognised Mainland Funds before making an investment decision.

Offering document and key facts statement (KFS)

In Hong Kong, issuers of SFC-authorised products have to issue offering documents to help investors understand the products and make informed decisions. Likewise, Recognised Mainland Funds issuers have to make available to Hong Kong investors the bilingual (traditional Chinese and English) offering document, including the latest offering document registered with the CSRC, the covering document which provides supplementary information to Hong Kong investors, and the KFS which sets out the key features and risks of the Recognised Mainland Fund.

The management companies shall ensure that the offering documents of the Recognised Mainland Funds and their subsequent changes (if any) are made available to the investors in the Mainland and Hong Kong at the same time. The offering documents (including the KFS) should be provided to investors at the point of sale. These documents can also be found at the SFC List of Investment Products webpage1.

Know your investments and ask questions when in doubt

Make sure your intermediary explains to you the details of these important documents that contain full information of the fund during the sales process, and ask the intermediary why he/she thinks the fund suits you. Remember to ask questions if you don't understand!

Learn more about buying and selling of funds and disclosures by intermediaries at the sales process


1Information posted on the List of Investment Products is compiled on a best efforts basis. The offering documents are provided by the issuers and they are for your information only. The SFC has not independently verified the documents and will not be responsible for any error, omission or inaccuracy in the documents. The SFC reserves the right to omit or suspend any material submitted. Please note that there may also be a time gap between document receipt and posting on the repository. You can contact the relevant product issuers or distributors for the latest version of the offering documents.