A&L Goodbody has become the first Irish law firm to successfully obtain approval of an Irish UCITS sub-fund to trade in China A Shares via both the Shanghai-Hong Kong Stock Connect and Shenzhen–Hong Kong Stock Connect platforms. The Shenzhen–Hong Kong Stock Connect platform, which launched on 5 December 2016, is an extension of the Stock Connect trading link which launched via the Shanghai-Hong Kong Stock Connect in November 2014.
On 19 December 2016, the Central Bank of Ireland issued an amended UCITS Questions & Answers which permitted UCITS investment funds to invest in China A shares, subject to meeting certain conditions, via the Shenzhen–Hong Kong Stock Connect platform. A key consideration for clients looking to incorporate the ability to invest in China A shares via the Shenzhen–Hong Kong Stock Connect platform is to ensure that their depositary or a sub-custodian appointed by the depositary must ensure that it retains control over the shares at all times and is a participant in the relevant Stock Connect platform.
A&L Goodbody’s Asset Management & Investment Funds team has worked with a number of key players in the Irish and Asian markets to ensure that our clients can be advised in relation to significant developments in investment fund trends to allow clients to be first to market with products that will distinguish their products in a competitive marketplace. A&L Goodbody’s Asset Management & Investment Funds team is a top ranked, experienced and dynamic group of specialists, offering a comprehensive legal, regulatory and taxation service to clients and remains at the forefront of the investment funds industry in Ireland.