The Executive Director of the Investment Products Department of the Hong Kong Securities and Futures Commission, Cai Fengyi, stated that the further optimization of the mutual recognition arrangement for funds between the Mainland and Hong Kong has brought opportunities for the fund management industry in Hong Kong. She pointed out that the recognition of Hong Kong funds last year saw a significant rebound in fund inflows, reversing the net redemptions in 2022, with positive momentum continuing into this year. She mentioned that in the first four months of this year, there was a fund inflow of 8.2 billion yuan, surpassing the net inflow of 5.9 billion yuan for the whole year last year, as well as the net inflow of 7.2 billion yuan in 2019 before the epidemic. Cai Fengyi also pointed out that the ratio of offshore sales of mutual recognition funds has been increased from 50% to 80%, which means that after the increase, the maximum sales scale of recognized Hong Kong funds to Mainland clients will be four times the fund management scale. In addition, she mentioned that since the launch of the ETF Connect in July 2022, it has boosted trading volume in the Hong Kong ETF market, with ETFs accounting for 14% of the turnover on the main board in the first quarter of this year.