HKEX launches order-routing service to enhance mutual fund distribution ecosystem Hong Kong Exchanges and Clearing (HKEX) has launched an order-routing service on its fund platform as part of its move to diversify its business and support the government’s ambition to strengthen the city as an international wealth management centre. “This centralised platform will connect participants of all sizes across the fund value chain, fostering greater collaboration and elevating operational efficiencies for the fund distribution industry,” CEO Bonnie Chan Yiting said at a ceremony to launch the service on Thursday. “This offering underscores our commitment to further advance the development of Hong Kong’s fund distribution ecosystem and to enhance its position as a leading hub for wealth and asset management in the region.” The order-routing service on the exchange’s fund platform was designed to facilitate seamless interaction between fund distributors and transfer agents with mutual fund companies. The funds’ subscription and redemption information will be available electronically via the platform. A total of 33 firms, mainly mainland Chinese banks and fund houses, will use the order-routing services. This includes 17 fund distributors like Bank of China (Hong Kong), Bank of Communications (Hong Kong), Chief Securities, China Construction Bank (Asia) and Haitong International Securities. Ten fund houses, including BOCHK Asset Management, Bosera Asset Management (International) and CCB International, as well as six transfer agents like Bank of Communications Trustee, BOCI-Prudential Trustee, and State Street Bank and Trust, will use the platform. The launch of the fund platform comes amid strong growth in fund management services in Hong Kong. Net fund inflows reached HK$340.3 billion (US$44 billion) over the past 12 months, a 285 per cent increase year on year, according to Salina Yan Mei-mei, permanent secretary (financial services) of the Financial Services and the Treasury Bureau. “The development of an efficient and vibrant fund distribution ecosystem will drive market efficiency and lower transaction costs, which in turn will benefit investors,” she said at the launch ceremony. Fund managers also welcomed the HKEX’s new service, noting that the order-routing service would enhance the sale and redemption process of fund products. “We expect more fund houses and distributors to join the platform in future,” said Sam Yu Chun-sing, chairman of the Hong Kong Investment Funds Association. The communications network of the new service was supported by Shenzhen Securities Communication, a unit of the Shenzhen Stock Exchange, the exchange said. “By enhancing the connectivity between various market participants, the order-routing service can help significantly improve the efficiencies of the fund distribution ecosystem,” said Christina Choi, the executive director of investment products at the Securities and Futures Commission (SFC). “This is expected to contribute to cost optimisation in the fund sales chain, which will also strengthen the overall competitiveness of the Hong Kong retail funds market.” The launch of the routing service comes after the HKEX in December allowed investors to search and access information on more than 2,000 retail funds authorised by the SFC, including those from HSBC, BlackRock, Morgan Stanley, Allianz Global Investors and Fidelity. The new platform complements other initiatives launched by the government since March 2023 to promote the city as a hub for wealth management and family offices. Chief Executive John Lee Ka-chiu pledged in his policy address in October 2022 to expand the scope of tax ­concessions for single-family offices. In March last year, the government launched the Capital Investment Entrant Scheme to give fast-track residency to individuals who invest HK$30 million (US$3.8 million) or more in stocks, bonds or insurance in the city. The HKEX said the next phase of the fund platform’s development would include the provision of nominee services, as well as facilitation of payments and settlement. Financial Secretary Paul Chan Mo-po last month urged the HKEX to diversify its business and attract more international companies to list in Hong Kong. https://www.scmp.com/business/markets/article/3316825/hkex-launches-order-routing-service-enhance-mutual-fund-distribution-ecosystem (ICE HONG KONG)

Fonte notizia: South China Morning Post