Aurexia’s regulatory experts have delved deeply into the latest initiatives from China which contributed to the opening of its markets and the inflows and outflows of capital investment into its economy. We have produced a study titled “Insights into China”, and this production is the first glance at it.

On 30^th July 2018, the Open-Ended Fund Company (OFC) structure regime came into force. The latest initiative by the Securities’ & Futures Commission of Hong Kong to inject some fuel into its wealth management industry by providing fund managers an alternative option to structure their funds.

There are four core benefits of this fund structure:

1. Corporate Fund Structure – Allowing investment managers an alternative fund structure which they can utilize based on their investment objectives and requirements of their clients
2. Tax Exemption Incentives – Both public and private OFCs will be able to qualify for tax exemption incentives provided they fulfil a set of requirements
3. Umbrella Structure for funds – Flexibility to organize investment fund as an umbrella fund, which can cater for broad investment objectives, with increased attractiveness to a wider spectrum of investors.
4. Single Jurisdiction presence – Fund managers who domicile and distribute funds in Hong Kong will not have to worry about the implications and considerations of legal and regulatory aspects of an offshore domiciled location and onshore distribution.