Wealth connect scheme welcomed

June 29, 2020

The People's Bank of China and the monetary authorities of Hong Kong and Macau will jointly implement the two-way cross-boundary wealth management connect pilot scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, the Monetary Authority announced today.


Under Wealth Management Connect, residents in Hong Kong, Macau and nine cities in Guangdong can carry out cross-boundary investment in wealth management products distributed by banks in the bay area.


Welcoming the joint announcement by the three bodies on the initiative, the Hong Kong Special Administrative Region Government said Wealth Management Connect is an important measure for the bay area’s financial development and a milestone in promoting mutual access of financial markets in the area.


According to the announcement, relevant regulators in the Mainland, Hong Kong and Macau will discuss and agree on implementation details including the scope of eligible investment products, investor eligibility, investment mode, investor protection and handling of disputes.


The date of Wealth Management Connect’s formal launch and implementation details will be separately specified.


Chief Executive Carrie Lam said the launch of initiative demonstrates the strong support of the central government and the importance it attaches to financial development in the bay area, underlining the solid backing from the nation and the leading role Hong Kong continues to play in the country's economic development and opening up of financial markets.


“With the formulation of the national security law, Hong Kong will restore its stability, rule of law and sound business environment, thereby securing investors' confidence and further consolidating and enhancing Hong Kong's position as an international financial centre," she added.


Financial Secretary Paul Chan said Wealth Management Connect brings enormous business opportunities to the entire financial industry value chain and other professional services in Hong Kong, opens up a broader market for the financial sectors of the three places and provides more wealth management product choices for bay area residents.


Mr Chan explained that the scheme will promote cross-boundary flow and use of renminbi and further reinforce the city’s position as the global offshore RMB business hub.


“At the same time, Wealth Management Connect provides more incentives for international financial institutions to have a foothold and invest more resources in Hong Kong so as to serve the large investor base in bay area cities, which will in turn strengthen Hong Kong's role as the international asset and management centre and important gateway for capital flowing into and out of the Mainland."  


The central government promulgated the Opinion on Providing Financial Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area on May 14, introducing various concrete measures, including Wealth Management Connect in relation to the development of the bay area’s finance.


The Hong Kong SAR Government emphasised that it will continue to promote and implement in an orderly manner further measures in the opinion to deepen financial collaboration in the bay area.

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