Shenzhen to support HKEX's fund platform development

Hong Kong Exchanges and Clearing (0388) said it has signed a cooperation agreement with a unit of Shenzhen Stock Exchange to support the development of HKEX's new integrated fund platform.

This cooperation will see Shenzhen Securities Communication establish a financial data exchange platform network in Hong Kong.

The network will serve as a foundation for the new integrated fund platform's communications network, which will allow users to communicate effectively and support key processes such as subscriptions, redemptions and notifications.

Last November, HKEX said it was developing an integrated fund platform for the distribution of retail funds, supporting Hong Kong's role as a regional and global wealth management hub.

The platform will cover the full distribution cycle and value chain for retail funds in Hong Kong, helping to lower barriers of entry to the industry and allowing market participants to better distribute fund products to their clients.

The platform will start as a business-to-business service model and is comprised of three primary components: a communication hub, a business platform and an information portal.

The first phase is expected to be launched by the end of this year.