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. This in turn will give investors access to a broader range of products, offering great choice and enhancing overall market efficiencies. The platform will cover funds authorised by the Securities and Futures Commission.

Glenda So, HKEX Group Head of Emerging Business and FIC, said: “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. Our commitment to connecting capital with opportunities underpins this development project, to build an integrated platform for retail funds in Hong Kong. We look forward to helping enhance and support retail fund distribution in Hong Kong, providing investors with cost-effective access to a broader choice of fund products, from a more diversified group of distributors.”

Initially, the fund platform will be a business-to-business service model, and will consist of three main components: a Communication Hub - a centralised network that connects different parties in the fund distribution ecosystem, such as fund managers and distributors, to facilitate transactions; a Business Platform - covering functionalities such as fund order routing, subscriptions and redemptions, payments and settlements, and various optional nominee services; and, an Information Portal - helping the investing public with access to more information and greater transparency on fund investment options.

HKEX is currently evaluating the operating model and structure of the fund platform. Working closely with the Hong Kong Government, the Securities and Futures Commission and other stakeholders on its development, HKEX intends to finalise the platform design and development framework over the coming months.