Chinese Investors Boost Hong Kong Mutual Funds

The Tracker Fund of Hong Kong (TraHK), celebrating its 25th anniversary, continues to thrive as a significant exchange-traded fund that provides investors with exposure to the Hang Seng Index. TraHK has become a reliable investment tool, aiming to attract more overseas investors and enhance its appeal through various initiatives. Concurrently, Chinese investors are increasingly turning to Hong Kong's mutual funds, particularly those investing in overseas bonds, following the relaxation of regulations under the Mutual Recognition of Funds (MRF) scheme. This change has led to a surge in demand for funds, especially those focusing on U.S. Treasuries, as domestic bond yields in China remain low and the stock market struggles. The MRF scheme's lifted sales quotas have propelled sales, with several funds quickly reaching their subscription limits. Analysts note this trend highlights a growing appetite for international investment opportunities amid challenges in the Chinese market.