FINANCE

CICC Launches Hong Kong Custody Business as Mainland Funds Expand Overseas

Published: Jul. 31, 2026 3:55 a.m. GMT+8

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China International Capital Corp. on July 30 launched its “Yangfan Plan,” a strategy centered on a new international asset-custody business in Hong Kong. Photo: VCG

China International Capital Corp. Ltd. (CICC) on Thursday launched an international asset custody business in Hong Kong to serve a growing number of mainland asset managers expanding offshore.

The step highlights a broader trend among Chinese financial institutions seeking to build international operations as mainland investors continue to look overseas for asset allocation, despite tighter scrutiny of cross-border capital flows at home.

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CICC launched asset custody business in Hong Kong for mainland asset managers expanding offshore.
In 2025, net capital inflows to mainland-affiliated Hong Kong asset and wealth management institutions surged 80% to HK$460bn, with AUM up 28% to HK$3.95tr.
CICC favors Hong Kong's OFC structure for lower costs and tax benefits.

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Who’s Who

China International Capital Corp. Ltd.: China International Capital Corp. Ltd. (CICC) launched an international asset custody business in Hong Kong to serve mainland asset managers expanding offshore. It offers middle- and back-office services, leveraging Hong Kong’s regulatory regime. The move reflects a broader trend of Chinese financial institutions internationalizing.

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What Happened When

2018：: Hong Kong introduced the Open-ended Fund Company (OFC) regime to provide a vehicle for secondary-market investment strategies.

Since 2021：: Hong Kong subsidizes 70% of OFC setup costs and grants tax concessions on investment profits and carried interest.

2025：: Net capital inflows into mainland-affiliated asset and wealth management institutions in Hong Kong jumped 80% year over year to HK$460 billion ($58.7 billion), and their assets under management increased 28% to nearly HK$3.95 trillion.

2026：: Mainland regulators introduce stricter rules on outbound investment, cross-border securities operations, and offshore trusts.

By the end of June 2026：: 752 OFCs were registered in Hong Kong, up 76 from six months earlier.

Thursday, July 30, 2026：: China International Capital Corp. Ltd. (CICC) launched an international asset custody business in Hong Kong.

As of 2026：: Policy changes have not significantly weakened demand for cross-border investment, according to CICC's Qiao Bo.

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