HONG KONG -- Hong Kong's Securities and Futures Commission (SFC) announced Friday that the SFC and the China Securities Regulatory Commission (CSRC) have signed a memorandum of regulatory cooperation in respect of the Mainland- Hong Kong Mutual Recognition of Funds (MRF) and that the MRF would be implemented on July 1.

The memorandum also established a framework for exchange of information, regular dialogue as well as regulatory cooperation in relation to the cross-border offering of funds.

"The mutual recognition of funds initiative is a major breakthrough in the opening up of the mainland's funds market to offshore funds. It will also open up a new frontier for the mainland and Hong Kong asset management industries and make available a wider selection of fund products to investors in both markets," SFC's Chairman Carlson Tong said.

"More importantly, this initiative will lay the foundation for the CSRC and SFC to jointly develop a fund regulatory standard, promoting the integration and development of the Asian asset management industry."

Hong Kong Chief Executive Leung Chun-ying welcomed the joint announcement of CSRC and SFC.

"The arrangement could not only facilitate cross-border investment, but also provide an excellent platform to promote the advancement of the asset management industry in the mainland. It further demonstrates Hong Kong's role as the 'connector' between the country and rest of the world," Leung said.

Leung expressed his gratitude to the central government for supporting Hong Kong's continued development of the financial market and said he looked forward to the early implementation of the Shenzhen-Hong Kong Stock Connect to further promote the mutual access of the Hong Kong and mainland capital markets.