2018June 29，The China Securities Regulatory Commission officially promulgated the "Interim Provisions for Securities Fund Business Institutions to Use Hong Kong Institutional Securities Investment Consulting Services" (hereinafter referred to as the "Interim Provisions")，and will be officially implemented on July 1。The Securities and Futures Commission of Hong Kong welcomes the regulation。
"Interim Provisions" Applicable to Mainland Securities Fund Business Institutions under Southbound Trading，and related behaviors of fund managers of publicly offered securities investment funds using the securities investment consulting services of Hong Kong financial institutions.。This institutional arrangement further clarifies the boundaries of cooperation between the mainland and Hong Kong in the field of securities investment consulting services.、Division of responsibilities and supervision mechanism。
Hong Kong Stock Research ReportandInvestment advisory business模式
在业务模式方面，《暂行规定》主要对两类跨境证券投资咨询合作作出安排：
- Hong Kong Stock Research Reportbusiness model：Since the China Securities Regulatory Commission issued the "Guidelines for Securities Fund Operating Institutions to Participate in the Stock Connect Trading Connect between the Mainland and Hong Kong Stock Markets" in October 2016,，香港持牌机构可以以内地关联机构的名义发布港股通相关研究报告。在此基础上，《暂行规定》允许内地证券基金经营机构使用香港机构授权的研究报告，并将相关研究报告转发给客户。
- 港股投资顾问business model：The "Interim Regulations" allow mainland securities and fund operating institutions to entrust qualified Hong Kong related institutions，Provide investment advice on Hong Kong stocks to securities fund operating institutions or investors。
Participating institution qualification review and accountability mechanism
In terms of institutional qualifications and responsibility arrangements，The "Interim Regulations" clearly require mainland securities and fund operating institutions to strictly review the licenses of participating institutions、Experience、Professional strength and other qualifications。seventh、eight、Nine、Article 10 further stipulates the responsibilities and obligations of securities fund institutions in the two places，Formation of "Hong Kong investment consulting service institutions are responsible for mainland securities and fund operating institutions"、Mainland securities and fund operating institutions are responsible for their customers" accountability mechanism，Protect the basic rights of investors from the institutional level。
In terms of regulatory mechanisms，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 relevant persons involved in accordance with the law.。For Hong Kong institutions that violate the "Interim Provisions"，The China Securities Regulatory Commission will adopt a cross-border regulatory cooperation mechanism，andHong Kong Securities and Futures CommissionInvestigate and deal with relevant institutions and responsible persons in accordance with the law。
The institutional value of capital market cooperation between the two places
we think，Promulgation of the "Interim Provisions"，It is a substantive cooperation between the mainland regulatory authorities and the Hong Kong regulatory authorities in the field of securities fund interconnection.。Implementation of this provision，It will have a profound and positive impact on the mutually beneficial cooperation between the capital markets of the two places.。
For mainland securities and fund operating institutions，Analysis of Hong Kong Institutions’ Investment in Hong Kong Stocks、Professional advantages in listed company research and cross-border market understanding。Mainland institutions can draw on the research capabilities and investment consulting experience of Hong Kong institutions，Enhance the competitiveness of Hong Kong Stock Connect-related products and fund products。
For Hong Kong organizations，Collaborate with mainland institutions，Helps expand business scope and business scale，and further connect mainland customers and resources。The "Interim Provisions" provide strong legal support for institutions in the two places to deepen cooperation.，At the same time, on the basis of promoting cooperation, the China Securities Regulatory Commission，Corresponding entry thresholds have also been set，To ensure market order and investor protection。
Hong Kong institution access requirements and business thresholds
Article 11 of the "Interim Provisions" clearly stipulates the access conditions for Hong Kong institutions：Hong Kong institutions providing research reports on Hong Kong stocks must have 20 licensed representatives，And have more than 3 years of research experience；providing investment advice香港持牌机构，You need to have more than 5 years of experience in asset management business，and requirements for securities assets of more than 10 billion Hong Kong dollars.。
So far as Article 11 is concerned，The China Securities Regulatory Commission has relatively high access requirements for Hong Kong institutions.。Hong Kong institutions must obtain approval from the China Securities Regulatory Commission，Only then can we provide research reports and consulting services to mainland institutions and individuals.。The core purpose of the system's design，is to protect the rights and interests of investors，and maintain the stable order of the Chinese market。
CDR Investment Awareness and Hong Kong 4、9Increase in license plate value
For CDR (Chinese Depository Receipts)，"Interim Regulations" provide Chinese investors with new information channels，Enable investors to obtain interpretations and valuations of the same listed company from different levels，Helps to be more objective、comprehensive、Understand the target company in depth。
For holdingHong Kong No. 4、9license plateof organizations，The "Interim Provisions" have broadened its business scope to a certain extent，It also indirectly promoted No. 4、9The market value of license plates。Have compliance qualifications、A Hong Kong institution with research capabilities and asset management experience，Will gain greater business development space in cross-border securities investment consulting cooperation。
Long-term prospects for cross-border securities fund interconnection
The "Interim Provisions" are an important step for the China Securities Regulatory Commission to increase opening-up to the outside world.、An important milestone in deepening the interconnection of securities funds between the two places。We look forward to Hong Kong stock research report business and investment advisory business becoming stable under the new regulatory framework、specification、sustainable development direction，We also look forward to this system further promoting broader mutually beneficial cooperation between mainland institutions and Hong Kong institutions.，Better meet investors’ cross-border investment needs。
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