The China Securities Regulatory Commission officially promulgated the "Interim Provisions for Securities Fund Business Institutions to Use Hong Kong Institutional Securities Investment Services" on June 29, 2018 (hereinafter referred to as the "Interim Provisions")，And the "Interim Regulations" will be officially implemented from July 1。The Securities and Futures Commission of Hong Kong welcomes。
The "Interim Provisions" are applicable to mainland securities fund companies under Southbound Trading，以及公开募集证券投资基金的基金管理人使用香港金融机构证券投资服务有关的行为。
in business model，The "Interim Provisions" make the following classifications：一是港股研究报告业务模式：自16年10月中国证监会发布《证券基金经营机构参与内地与香港股票市场交易互联互通指引》，Hong Kong licensed institutions can publish research reports related to Southbound Trading in the name of mainland affiliates。
Based on this provision，"Interim Regulations" allow mainland securities and fund operating institutions to use research reports authorized by Hong Kong institutions，and forward the research report to the client。Second, the Hong Kong stock investment advisory business model：The "Interim Regulations" allow mainland securities fund operating institutions to entrust relevant Hong Kong institutions to provide investment advice on Hong Kong stocks to securities fund operating institutions or investors.。
In terms of organizational qualifications and responsibilities，The "Interim Provisions" clarify
Require
Institutions strictly review the licenses from participating institutions，Qualifications such as professional experience and strength。The seventh provision，eight，Nine，Article 10 stipulates the responsibilities and obligations of securities fund institutions in the two places.，That is, Hong Kong investment service institutions are responsible for mainland securities and fund operating institutions.，Accountability system for mainland securities and fund operating institutions to be responsible to customers，Clearly protect the basic rights of investors。
on the regulatory mechanism，If a mainland institution violates the "Interim Provisions"，The China Securities Regulatory Commission will take regulatory measures or impose administrative penalties on the institutions or responsible persons involved in accordance with the law.。For Hong Kong institutions that violate the "Interim Provisions"，China Securities Regulatory Commission adopts cross-border regulatory cooperation mechanism，Investigate relevant institutions and responsible persons with the Hong Kong Securities and Futures Commission in accordance with the law。
Yicai, a researcher at Morgan Stanley Financial Services Group who focuses on the field of financial compliance, believes that，The promulgation of the "Interim Provisions" is a substantive cooperation between the mainland regulatory authorities and the Hong Kong regulatory authorities.。The implementation of the regulations will have a profound and positive impact on the mutually beneficial cooperation between the capital markets of the two places.。Mainland securities fund operating institutions can make full use of Hong Kong institutions’ expertise in Hong Kong stock investment analysis.
Advantages
，Provide professional investment advice to enhance the competitiveness of fund products。
For Hong Kong institutions，Through cooperation with mainland institutions，Hong Kong companies have also made good strides in business scope and scale.，Hong Kong institutions can also expand mainland customers and resources through cooperation with mainland institutions。The "Interim Provisions" provide strong legal support for in-depth cooperation between institutions in the two places。While promoting cooperation between the two places, the China Securities Regulatory Commission，Corresponding thresholds have been set。
Article 11 of the "Interim Provisions" stipulates that Hong Kong institutions that provide Hong Kong stock research reports must have 20 licensed representatives，And have more than 3 years of research experience；Hong Kong licensed institutions that provide investment advice need to have more than five years of asset management business and more than 10 billion Hong Kong dollars in securities assets.。
As far as the provisions of Article 11 are concerned，China Securities Regulatory Commission’s access to Hong Kong institutions
Require
relatively high，Hong Kong institutions must obtain approval from the China Securities Regulatory Commission before they can provide research reports and services to mainland institutions and individuals.，The purpose of the China Securities Regulatory Commission is also to protect the rights and interests of investors and the order of the Chinese market.。
on the other hand，For CDR (Chinese Depository Receipts)，The "Interim Regulations" provide Chinese investors with new channels to obtain different levels of interpretation and valuation of the same listed company.，This helps investors gain a more objective and comprehensive understanding of a company.。For Hong Kong, which holds 4，9Number plate organization，The "Interim Provisions" have broadened their business scope to a certain extent，It also indirectly increased by 4，9The value of license plate。
The "Interim Provisions" are a milestone for the China Securities Regulatory Commission to increase opening up to the outside world and deepen the interconnection of securities funds between the two places.，We also look forward to the stable development of Hong Kong stock research report business and investment advisory business in the future.，We also hope that the new regulations can better promote more extensive mutually beneficial cooperation between mainland institutions and Hong Kong institutions.，To better meet the needs of investors for cross-border investment。
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