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Monday, September 07, 2020, 18:41
Bay Area's Wealth Management Connect program 'too big to ignore'
By Chai Hua
Monday, September 07, 2020, 18:41 By Chai Hua

Many foreign financial institutions in Hong Kong are preparing for the proposed Wealth Management Connect program in the Guangdong-Hong Kong-Macao Greater Bay area, according to experts at BNY Mellon, the world’s largest custodian bank.                                                                                         

The connect — the third cross-boundary financial arrangement, after those in stock and bond markets, which was announced by regulators in late June — allows residents in Hong Kong, Macao and nine Guangdong cities to invest in wealth management products distributed by banks in the area.

Financial institutions in both Hong Kong and Macao, who did not pay much attention to wealth management products in the past, have begun to discuss with BNY Mellon how to enter the arena

John Sin, 

head of Greater China asset servicing at BNY Mellon

John Sin, head of Greater China asset servicing at the New York-based bank, told a webinar on Monday that its team in Hong Kong has been preparing for the launch of the program and plans to recruit as many as 20 percent more employees in the next two to three years to deal with the growing business.

He envisaged the proposed Wealth Management Connect program opening as early as in the last quarter of this year.

He said that financial institutions in both Hong Kong and Macao, who did not pay much attention to wealth management products in the past, have begun to discuss with BNY Mellon how to enter the arena.

But he also expressed concern that the investment cap might not meet the demand.

Sam Xu, country executive at BNY Mellon China, said that the business expansion of financial institutions with personal wealth management services in the Bay area entails rising custodial demand of their swelling assets, which is BNY’s major focus.

Apart from the boon, many mainland companies are reevaluating where to go public, injecting fresh impetus to Hong Kong’s financial market, and he signaled his confidence in the city’s future as a financial hub.

He said that many foreign banks are cautiously expanding their investment to China, despite trade friction between the United States and China, because the Chinese market is “too big to ignore”.

grace@chinadailyhk.com


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