Ireland’s UCITS fund managers are set to embrace the Shanghai-Hong Kong Stock Connect Scheme following a key ruling from the Central Bank of Ireland.
On Wednesday, the Central Bank approved Irish domiciled UCITS funds invest in China’s domestic securities market via Stock Connect, which could provide a significant boost to activity from foreign investors in the scheme/
“It will allow the hundreds of global investment managers who already have Ireland as a strategic base for their cross-border funds to utilize this important access point. The detailed and considered work carried out by the Central Bank of Ireland demonstrates the importance of this channel,” says Pat Lardner, CEO, Irish Funds, the representative body for international fund managers based in Ireland.
The ruling from the Central Bank is the latest win for the Stock Connect scheme for attracting European investors, after Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF) approved the first lot of UCITS funds earlier this year.
“We look forward to a continual building of the links between Ireland and China and the opportunities that can be provided for investors via regulated funds,” adds Lardner.