Heads meet: Securities & Futures Commission Chairman Eddy Fong welcomes China Securities Regulatory Commission Vice Chairman Gui Minjie at the seminar.

Securities & Futures Commission Chairman Eddy Fong says a sound regulatory system is a must for boosting Hong Kong's market competitiveness. He hoped there will be stronger ties with the Mainland counterparts in developing the fund industries in both places.

About 40 representatives of around 30 of Mainland's largest fund and securities houses, led by China Securities Regulatory Commission Vice Chairman Gui Minjie, were in Hong Kong today to exchange views on market-development issues with more than 60 senior representatives of major international fund and securities houses, banks and law firms operating in Hong Kong.

Landmark event

"We are pleased that this landmark event not only helps promote the exchange and co-operation between the Mainland and Hong Kong fund-management industries, but also signifies the first step taken by the Mainland fund industry towards expansion into the international market," Mr Gui said.

"In view of China's vast economy and domestic savings, the Mainland fund market is only in an early development stage. As such, there are huge opportunities for development and enormous growth potential in the Mainland fund industry.

"As a regulator, we will adopt a prudent approach and closely monitor the business co-operation between the investment institutions within the Mainland and outside. We will learn from our experiences, and adjust and enhance the Qualified Domestic Institutional Investor regulations at the appropriate time with a view to promoting the implementation of the QDII scheme on a wider scale," he added.

Huge potential

Mr Fong noted there will be a huge potential demand from Mainland residents for investment products.

"With the implementation of CEPA IV, I hope that more Mainland fund management companies can establish their operations in Hong Kong. This will not only enable Mainland fund houses to further widen the scope of their activities, but also increase the size of the assets of the fund industry or the fund-management business in Hong Kong, thereby facilitating Hong Kong's development into a wealth-management centre for Mainland investors," Mr Fong said.

"As a regulator, we understand that in order to improve our market competitiveness, we must have a sound regulatory system which enables our markets to develop in an orderly environment. In this regard, we are looking forward to further co-operation and better communication with our Mainland counterparts in our joint effort to develop the fund industries in both places."