On 29 June 2018, the China Securities Regulatory Commission ("CSRC") officially promulgated the Interim Provisions on the Use of Hong Kong Institution Securities Investment Consulting Services by Institutions Engaged in Securities or Funds Business (the "Interim Provisions") , following CSRC's issuance of a consultation draft of the same on 20 April 2018 for public comment . The Interim Provisions officially came into effect on 1 July 2018. It is widely regarded as a favorable measure to further promote common development and mutual cooperation between the capital markets of mainland China and Hong Kong.
How will the Interim Provisions deepen the opening-up and cooperation between the capital markets of mainland China and Hong Kong? This newsletter begins with a background of the Interim Provisions, interprets the key requirements, and analyzes the impact on mainland-based securities firms and fund management companies ("Mainland Institutions") and Hong Kong-based institutions ("HK Institutions").