Euroclear Unlocks China Gateway for Mutual Funds

Euroclear has open an account with Hong Kong’s CSD, the Central Moneymarkets Unit (CMU), providing a key opening to link with the Chinese capital market.

The announcement coincides with the announcement from Hong Kong and Chinese regulators on the implementation of the Mainland-Hong Kong Mutual Recognition of Funds (MRF) initiative. The membership with CMU allows Euroclear to participate in the programme.

Clients of Euroclear will also be able to access China-domiciled funds through Euroclear’s fund process platform, FundSettle.

“The ability to gain access to China domiciled funds under the MRF arrangement is a major development,” Iwan Nicora, CEO Hong Kong Branch, Regional Head, Asia-Pacific, Euroclear.

“This initiative reinforces our Asia growth strategy as we continue to support the development of the MRF as we endeavour to facilitate an international link to this market. We expect demand to grow significantly in the next three to five years.”