A ferry boat sails across the Victoria Harbour on Sept 7, 2023. (SHAMIM ASHRAF / CHINA DAILY)
Financial regulators announced measures on Thursday to broaden the scope of products traded under the Cross-boundary Wealth Management Connect program, while resetting the eligibility criteria to allow more investors and brokerages participating in the program in a move to promote financial connectivity and enhance financial vitality.
According to a joint statement by regulators from the mainland, and the Hong Kong and Macao special administrative regions, eligible securities firms will be allowed to distribute investment products and provide relevant services to Southbound Scheme and Northbound Scheme individual investors.
The scope of Southbound Scheme and Northbound Scheme eligible products will be expanded to better satisfy Guangdong-Hong Kong-Macao Greater Bay Area residents’ demand for diversified investments.
Hong Kong Financial Secretary Paul Chan Mo-po said the measures will “enrich the investment options of GBA residents and promote mutual access to the financial markets of the three places, which is conducive for the industry to explore business opportunities in the GBA, and can further realize the potential of the Wealth Management Connect”
The program will also adjust the eligibility criteria of investors so that more people can join in. The authorities said they will also optimize promotion and sales arrangements to support financial institutions to offer quality financial services to GBA residents.
Industry pundits in Hong Kong said the announcement signifies further facilitation of cross-border investments for GBA residents, boosting Hong Kong’s position as an international asset and wealth management center.
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Acknowledging that the Wealth Management Connect has been growing steadily since its launch in September 2021, Hong Kong Financial Secretary Paul Chan Mo-po said the measures will “enrich the investment options of GBA residents and promote mutual access to the financial markets of the three places, which is conducive for the industry to explore business opportunities in the GBA, and can further realize the potential of the Wealth Management Connect”.
Chief Executive of the Hong Kong Monetary Authority Eddie Yue Wai-man said, “Based on practical experience, and taking into account investor demand as well as industry feedback, we have formulated a series of enhancement initiatives.”
Yue said the HKMA is developing implementation details “to put the initiatives into action at full speed”, thereby furthering the development of Hong Kong’s financial industry.
Julia Leung Fung-yee, CEO of the Securities and Futures Commission, said the new measures “allow eligible brokerage firms to participate in the pilot for the first time. It also provides a wider range of fund product choices for mainland investors and enhances the links in the GBA market.”
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Terence Chong Tai-leung, an associate professor at the Chinese University of Hong Kong’s economics department and executive director of the Lau Chor Tak Institute of Global Economics and Finance, suggested that governments in the region lower the threshold for cross-border financial data sharing to promote the long-term development of the program.
