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【Introduction: Many popular bond mutual recognition funds are closed

China Fund News reporter Fang Li and Lu Huijing

Recently, with the increasing demand for cross-border investment, the originally niche product - mutual recognition funds - has attracted more and more attention from investors. Among them, bond-type mutual recognition funds that use overseas bonds as their main investment targets have frequently "closed their doors" due to hot sales.

China Fund News reporter found that in the past seven trading days in August, three mutual recognition funds, including Gaoteng Asia Income, Huaxia Select Fixed Income Allocation, and Morgan Asia Total Return Bond, announced the suspension of mainland subscription business. In early July, E Fund (Hong Kong) Select Bond Fund also announced the suspension of mainland subscription business.

Many industry insiders said that the near-term window for the Fed to cut interest rates may be good for US bonds, which has also increased the attention of domestic investors to such products to a certain extent. However, unlike QDII funds, mutual recognition funds set up different currencies, hedging and non-hedging, accumulation and dividend shares. Investors need to consider factors such as exchange rate trends and risk tolerance to choose the share that suits them.

Many bond mutual recognition funds "closed their doors"

Another type of niche product has quietly become popular recently, and many of them have announced their closure.

On August 9, Gaoteng Asia Income Fund issued an announcement to suspend the subscription business in the Mainland. The announcement stated that according to the "Provisional Regulations on the Administration of Hong Kong Mutual Recognition Funds", the sales scale of Hong Kong mutual recognition funds in the Mainland should not exceed 50% of the total assets of the fund. If the percentage reaches 47%, the fund manager has the right to decide whether to suspend accepting investors' subscription applications. If the subscription applications received on a certain trading day may cause the sales scale of the fund in the Mainland to account for 50% or more of the total assets of the fund, the fund will suspend sales in the Mainland until the fund meets the conditions of Hong Kong mutual recognition funds again.