The Hong Kong Exchange and Clearing (HKEX) is developing an integrated platform to facilitate the sales process of locally registered retail funds in a bid to lower entry barriers into the industry, create more choice for investors, and bolster the city’s standing as an international financial centre.
The bourse is working closely with the Hong Kong government, the Securities and Futures Commission and other stakeholders, and aims to finalise the design and development framework “over the coming months”.
“The platform, currently in development, will cover the full distribution cycle and value chain for retail funds in Hong Kong, helping to lower the barriers of entry to the industry and allowing market participants to better distribute fund products to their clients,” the HKEX says in a statement on November 3.
The platform will be structured as a business-to-business service model with three main components: a communication hub, a business platform, and an information portal.
The communication hub is a centralised network connecting different parties, such as asset managers and distributors, in the fund distribution ecosystem in order to facilitate transactions.
The business platform covers functionalities such as order routing and subscriptions, and the information portal will help investors to access more details and provide greater transparency on investment options.
“At HKEX, we are committed to further building the attractiveness and competitiveness of Hong Kong as an IFC, bringing more diversity to the market and more choice for investors,” says Glenda So, the bourse’s group head of emerging business and fixed income and currency.
