Financial industry players are calling for further optimization of the Cross-Boundary Wealth Management Connect Scheme, in particular easing restrictions for Hong Kong and Macao institutions to offer advisory services to Chinese mainland residents.

China International Capital Corporation Limited (CICC), one of China’s leading investment banks, made the proposal during a media interview after its annual Guangdong-Hong Kong-Macao Greater Bay Area Wealth Management Summit on Thursday.

This would allow investment advisors to better utilize their professional expertise and provide more comprehensive wealth management services to clients, said Diao Zhihai, head of CICC’s International Business of Wealth Management.

Launched in September 2021, the Wealth Management Connect is the first mutual market access mechanism for individual investors, enabling eligible residents in nine mainland Greater Bay Area cities, as well as the Hong Kong and Macao special administrative regions, to invest in wealth management products distributed by banks in the other markets through a closed-loop fund flow arrangement.

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Under the current framework, participating institutions are required to comply with investor suitability requirements and cross-boundary service rules, which means that qualified licensed fund industry professionals in Hong Kong are unable to travel to mainland cities in the Greater Bay Area in person to interact directly with investors.

By the end of June, the number of participants in the program had exceeded 180,000, with the total amount of funds transferred reaching 140.3 billion yuan ($20.94 billion), as investment channels for Greater Bay Area residents continued to expand.

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CICC said the program still has significant growth potential, noting that the current number of account openings is “almost negligible” compared with the potential eligible population in the Greater Bay Area.

Sam Yu Chun-sing, chairman of the Hong Kong Investment Funds Association, recently made a similar appeal. At the same time, he said he looked forward to an early launch of “Wealth Management Connect 3.0”, calling to increase the maximum investment amount under the program to eight million yuan and cover more approved fund products, as well as products with higher risk ratings.

Contact the writer at bingcun@chinadailyhk.com