HSBC will take a prominent part in the MRF scheme which received approval in December 2015.

HSBC Securities Services will act as trustee to four of the six Hong Kong domiciled funds approved for distribution in mainland China under the mutual recognition of funds (MRF) scheme.

This marks the latest development in the MRF scheme since it received approval in December 2015, with northbound net flows for the six funds totalling RMB 2.76 billion to June this year.

With a further 10 northbound fund approvals pending, it is estimated that total assets under management could reach RMB 66.5 billion.

“The northbound distribution of funds from Hong Kong into China through the mutual recognition programme will enrich and diversify the retail fund market in China,” said Ian Banks, head of Securities Services, Asia at HSBC.

“We have worked closely with our clients and the regulators to understand the opportunities of this programme.”

The Securities and Futures Commission of Hong Kong has also approved 42 Chinese funds for distribution in Hong Kong, with around 21 having commenced sales in Hong Kong.

“China has been gradually transformed from a savings nation to an investment nation with the emergence of middle class and the wealth building up in the last few decades,” said Ian Stephenson, global head of fund services at HSBC.