Published On: Fri, Aug 6th, 2010

HK SFC Authorizes First Renminbi-Denominated Fund

The Securities and Futures Commission (SFC) has authorised the first fund denominated in renminbi (RMB) for sale to retail investors in Hong Kong.

The SFC has been working closely with industry participants to enable the introduction of RMB-denominated investment products to support the initiative to develop Hong Kong into an offshore RMB centre.

“Hong Kong has a unique role in China’s internationalisation of its currency. As the RMB becomes more popular and widely held outside the Mainland, demand for RMB-denominated investment and financial products will grow. Hong Kong’s role is to make these products available and manage their risks,” said Mrs Alexa Lam, the SFC’s Deputy Chief Executive Officer and Executive Director of Policy, China and Investment Products.

The first retail RMB-denominated fund was authorized under the enhanced product authorization regime. Investors are reminded that as with all investments, they should understand the features and risks inherent in RMB-denominated funds before investing. They should read the offering documents and the product key facts statements carefully to ascertain whether specific products are suitable for them.

The SFC’s investor education portal InvestEd (www.InvestEd.hk) has posted reference materials to help investors understand the key features and risks of RMB products, including RMB funds.

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