China has introduced Wealth Management Connect, a scheme that is looking to better connect its southern Guangdong province with neighbours Hong Kong and Macau.
According to Wealth Briefing Asia, the scheme – which tightens financial and investment links between the former colonies – is a move designed to bind Hong Kong and Macau more closely with mainland China.
It is expected the scheme will initially lead to combined fund flows of around Y300 billion ($46.53bn), according to Reuters.
The program will also allow residents of Hong Kong and Macau to purchase mainland investment products sold by banks in the Greater Bay Area of China, while also enabling residents of nine Guangdong cities to buy those sold by banks in two separate offshore centers.
WBA claimed that the development was similar to Stock Exchange Schemes arranged between Hong Kong and the mainland which were launched a few years ago in a move to boost local equity markets.
Bank of China (Hong Kong) vice chairman and chief executive Sun Yu said, “The initiative not only brings new impetus for the wealth management industry in the GBA, but also helps promote the high-quality development of the financial industry in the region, as well as the internationalisation of Renminbi.
“With its preparations in full swing, BOCHK aims to launch the cross-boundary wealth management service as soon as it obtains the regulatory approval. We have also been working collaboratively with the GBA branches of Bank of China, our parent bank, in various aspects including customer experience optimisation and investor protection.”
The Private Wealth Management Association executive committee chairman Amy Lo added, “The launch of this new scheme will widen the scope of investment opportunities available to clients of the Greater Bay Area and is an important step toward realising the potential of the Greater Bay Area to become a leading global hub of wealth creation and management.”
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