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SEC issues ‘Additional Guidance’ to facilitate cross-border offerings of ESG Funds under the HK-TH MRF

Wednesday 6 December 2023 | No. 234 / 2023

Bangkok, 6 November 2023 – The Securities and Exchange Commission, Thailand (SEC) has issued the Additional Guidance on Cross-border Offerings of ESG Funds under the Mutual Recognition of Funds between Hong Kong Special Administrative Region of the People's Republic of China and Thailand Framework (HK-TH MRF) with an aim to provide guidance to Hong Kong Management Companies regarding cross-border offerings of ESG Funds under the HK-TH MRF while supporting fair competition and the sustainable development of the capital markets in Hong Kong and Thailand and fostering economic relations between the two jurisdictions.

Currently, sustainable investing has gained continuous interest from global investors. Both the SEC and the Securities and Futures Commission, Hong Kong (SFC) place importance on promoting the sustainable development of the respective capital markets. In the initial phase, the SEC has developed Additional Guidance for disclosing sustainability information for Hong Kong's ESG Funds, intending to use the SRI Fund symbol when marketing such funds in Thailand under the HK-TH MRF project, which requires that asset management companies disclose fund information according to the destination country's criteria as well. This latest Additional Guidance facilitates the smooth offering of Hong Kong's ESG Funds in Thailand in accordance with the SEC standards.

Ms. Pornanong Budsaratragoon, SEC Secretary General, said: “The making of the Additional Guidance under the HK-TH MRF project this time will facilitate more convenient sale of Hong Kong's ESG Funds in Thailand, and give Thai investors more diverse investment choices while ensuring an appropriate level of protection. Additionally, it serves as a mechanism for supporting investments in businesses that prioritize sustainability, further contributing to the economic relations between the two markets. This aligns with the objectives of the Memorandum of Understanding for Strengthening Economic Relations between the Kingdom of Thailand and the Hong Kong Special Administrative Region, People's Republic of China, as signed by both governments, to enhance economic relations and promote the linkage of the respective capital markets.”

Furthermore, the Additional Guidance will assist the SEC in overseeing Hong Kong's ESG Funds under the HK-TH MRF with the same standards as the Sustainable and Responsible Investing Funds (SRI Fund) and other mutual funds in Thailand. This ensures a level playing field between domestic and foreign funds. Thai investors will have sufficient information to make informed investment decisions and compare Hong Kong's ESG Funds with SRI Funds and other funds in Thailand.

More information on the Additional Guidance on Cross-border Offerings of ESG Funds under the Mutual Recognition of Funds between Hong Kong and Thailand is available at HK-TH-MRF (sec.or.th).

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Remarks:
1. The HK-TH MRF project is carried out under the Memorandum of Understanding for Strengthening Economic Relations between the Kingdom of Thailand and the Hong Kong Special Administrative Region, People's Republic of China, signed by both governments on 29 November 2019.

2. The Sustainable and Responsible Investing Fund (SRI Fund) is a mutual fund with an investment policy focusing on investment in securities of businesses that operate sustainably according to internationally accepted principles such as the United Nations Sustainable Development Goals (UN SDGs). Asset management companies must disclose information related to the sustainability of the invested mutual funds in accordance with to the rules specified by the SEC. More information on SRI Fund is available at SustainableFinance (sec.or.th).

NEWS

Securities and Exchange Commission

Corporate Communication and Investor Service Department

Tel. (66)2033-9502-5 E-mail: press@sec.or.th

No. 234 / 2023	Wednesday 6 December 2023
SEC issues ‘Additional Guidance’ to facilitate cross-border offerings of ESG Funds under the HK-TH MRF
Bangkok, 6 November 2023 – The Securities and Exchange Commission, Thailand (SEC) has issued the Additional Guidance on Cross-border Offerings of ESG Funds under the Mutual Recognition of Funds between Hong Kong Special Administrative Region of the People's Republic of China and Thailand Framework (HK-TH MRF) with an aim to provide guidance to Hong Kong Management Companies regarding cross-border offerings of ESG Funds under the HK-TH MRF while supporting fair competition and the sustainable development of the capital markets in Hong Kong and Thailand and fostering economic relations between the two jurisdictions.
Currently, sustainable investing has gained continuous interest from global investors. Both the SEC and the Securities and Futures Commission, Hong Kong (SFC) place importance on promoting the sustainable development of the respective capital markets. In the initial phase, the SEC has developed Additional Guidance for disclosing sustainability information for Hong Kong's ESG Funds, intending to use the SRI Fund symbol when marketing such funds in Thailand under the HK-TH MRF project, which requires that asset management companies disclose fund information according to the destination country's criteria as well. This latest Additional Guidance facilitates the smooth offering of Hong Kong's ESG Funds in Thailand in accordance with the SEC standards. Ms. Pornanong Budsaratragoon, SEC Secretary General, said: “The making of the Additional Guidance under the HK-TH MRF project this time will facilitate more convenient sale of Hong Kong's ESG Funds in Thailand, and give Thai investors more diverse investment choices while ensuring an appropriate level of protection. Additionally, it serves as a mechanism for supporting investments in businesses that prioritize sustainability, further contributing to the economic relations between the two markets. This aligns with the objectives of the Memorandum of Understanding for Strengthening Economic Relations between the Kingdom of Thailand and the Hong Kong Special Administrative Region, People's Republic of China, as signed by both governments, to enhance economic relations and promote the linkage of the respective capital markets.” Furthermore, the Additional Guidance will assist the SEC in overseeing Hong Kong's ESG Funds under the HK-TH MRF with the same standards as the Sustainable and Responsible Investing Funds (SRI Fund) and other mutual funds in Thailand. This ensures a level playing field between domestic and foreign funds. Thai investors will have sufficient information to make informed investment decisions and compare Hong Kong's ESG Funds with SRI Funds and other funds in Thailand. More information on the Additional Guidance on Cross-border Offerings of ESG Funds under the Mutual Recognition of Funds between Hong Kong and Thailand is available at HK-TH-MRF (sec.or.th). ------------------------------------ Remarks: 1. The HK-TH MRF project is carried out under the Memorandum of Understanding for Strengthening Economic Relations between the Kingdom of Thailand and the Hong Kong Special Administrative Region, People's Republic of China, signed by both governments on 29 November 2019. 2. The Sustainable and Responsible Investing Fund (SRI Fund) is a mutual fund with an investment policy focusing on investment in securities of businesses that operate sustainably according to internationally accepted principles such as the United Nations Sustainable Development Goals (UN SDGs). Asset management companies must disclose information related to the sustainability of the invested mutual funds in accordance with to the rules specified by the SEC. More information on SRI Fund is available at SustainableFinance (sec.or.th).

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