China Introduces Wealth Management Connect with Assistance from Hong Kong, Macau

China has reportedly introduced the Wealth Management Connect (WMC) along with Hong Kong and Macau in order to conduct cross-border investments in various wealth management products distributed by banking institutions in the region.

The Wealth Management Connect trading scheme will be handling 300 billion yuan (appr. $46.5 billion) in total fund flows.

The Hong Kong government stated that the WMC is the very first mutual market access mechanism for investors who can invest as much as 1 million CNY.

Under this new scheme, Hong Kong-based individual investors may create a designated remittance account at an approved bank of their choice in Hong Kong and a designated investment account with its mainland China partner bank.

The Hong Kong Monetary Authority (HKMA) noted that the banking institutions can begin providing cross-boundary WMC services after the completion of the required preparatory work.

The SCMP reported that HSBC will be among the first service providers to apply to the HKMA which began taking applications when the update was formally announced on Friday. Meanwhile, mainland regulatory authorities will start taking applications in October 2021.

Carrie Lam, Chief Executive of Hong Kong, stated:

“Wealth Management Connect is a milestone in the financial development of the Greater Bay Area and an important measure that deepens and widens mutual access between the financial markets of the Mainland and Hong Kong. It underlines the unique advantages of Hong Kong’s financial system under the ‘One Country, Two Systems’ principle, contributes to the high-quality development of the Greater Bay Area and facilitates the financial development and further opening-up of our country.”

Paul Chan, Financial Secretary of Hong Kong, remarked:

“Wealth Management Connect will expand the cross-boundary investment channel and asset allocation choices for residents in the area and opens up a broader market for the financial and relevant professional sectors, bringing enormous business opportunities. It will also attract more international financial institutions to have a foothold in Hong Kong to expand their Mainland businesses, reinforcing further Hong Kong’s role as an important gateway for capital flowing into and out of the Mainland, as well as its position as the global offshore Renminbi business hub and an international asset management center.”



Sponsored Links by DQ Promote

 

 

Send this to a friend