Fund management firms in the Chinese Mainland have created an industry association that seeks to protect local companies as more foreign institutions are welcomed into the country, the South China Morning Post writes.

The Chinese Asset Management Association of Hong Kong was established in mid-July 2013, said the publication, citing unnamed sources. This was after the China Securities Regulatory Commission said it is expanding the Renminbi qualified foreign institutional investor scheme to include asset managers from other countries, such as the UK, Taiwan and Singapore. 

The sources said that Hong Kong-based Mainland fund managers saw the idea of allowing foreign firms to sell RQFII funds as a threat to their business. The creation of the association will thereby enable fund managers to lobby lawmakers in Beijing.

The group has 23 founding members, all of whom have offices in Hong Kong. These include CSOP Asset Management, E Fund Management, Haitong Asset Management and China Asset Management.