To take advantage of the emerging Islamic finance products market, Hong Kong will launch the Hang Seng Islamic China Fund. The Securities and Future Commission, the local regulator gave its approval for the new Islamic fund that will be run by Hang Seng Investment Management, a member of the HSBC group. According to an estimate by the ratings agency Standard & Poor, the Islamic finance market is worth $500 billion. The potential is much more as more and more Muslims seek to invest in products compliant with their religion. These funds do not invest in businesses that make alcohol, pork-related products or those involved in gambling. These products also need to be structured to avoid paying interests. An Islamic fund usually has religious scholars on its board to help select investment that comply with the Shariah law. Hong Kong is a relative latecomer to have joined the fray. Malaysia, a predominately-Islamic country and Singapore, which has a small Muslim population, have a developed Islamic bond market. London and Japan also have similar plans to launch Islamic bond or sukuk. Source:Financial Times Image:legal media group