On December 1, the Guangdong Branch of the People's Bank of China and other departments issued the Implementation Rules for the Cross-boundary Wealth Management Connect Pilot Business in the Guangdong-Hong Kong-Macao Greater Bay Area (Revised Draft for Comments) (hereinafter referred to as the "Consultation Paper"), which has attracted much attention as the "Cross-boundary Wealth Management Connect" in the Guangdong-Hong Kong-Macao Greater Bay Area2Version 0 is finally out. The reporter noted that compared with the "Cross-boundary Wealth Management Connect"1Version 0, 2Version 0 has been optimized and upgraded in terms of investor access conditions, scope of participating institutions, scope of qualified investment products, and quota of individual investors. Industry insiders believe that the "Cross-border Wealth Management Connect" 2Version 0 actively responds to market demand, and will further enhance the investment enthusiasm of the Cross-boundary Wealth Management Connect and promote the interconnection of financial markets in Guangdong, Hong Kong and Macao.
Lower the threshold and raise the quota
Enhance the ease of investment
According to the Consultation Paper, Cross-boundary Wealth Management Connect 2Version 0 will further improve the convenience of investors to participate in the business pilot, and more investors will share in this policy dividend.
The first is to lower the barrier to entry for investors. Specifically, the threshold for Mainland investors to participate in the Southbound Scheme has been lowered from "five consecutive years" to "two years". At the same time, "my average annual income in the past three years is not less than 400,000 yuan" is added as one of the alternative conditions for the access of household financial assets.
Secondly, it is necessary to appropriately increase the quota of individual investors, and increase the investment quota of a single investor from 1 million yuan to 3 million yuan. If an individual participates in the pilot through a bank and a ** company at the same time, the two channels each have a quota of 1.5 million yuan.
Industry insiders said that lowering the threshold and raising the quota responded to the expectations of the market.
A brokerage source said: "The increase in quota will greatly promote the activity of the 'Cross-boundary Wealth Management Connect' business. "At present, the risk-free rate of return in the Hong Kong market can reach about 5%, which is very attractive to mainland investors, and there is a large demand for the quota under the Southbound Scheme.
A relationship manager of a mainland bank told reporters that at present, some investors in the "Southbound Scheme" are using the quota of 1 million yuan in the "top grid", and the need to increase the upper limit of the quota is more urgent. "Recently, Hong Kong's deposit products have been more attractive, and some customers want to increase the quota of the Southbound Scheme to invest in Hong Kong deposits. If the individual quota is increased to 3 million yuan, then the income obtained by a single customer will also be higher. ”
Multi-faceted "expansion".
New securities firms will participate in the pilot
The new ** companies that meet the requirements as the main participant have always had a high market voice before. The Consultation Paper adds the participation of ** companies in the pilot program, and clarifies their participation methods and related business arrangements.
The above-mentioned ** industry source said: "Previously, the 'Cross-border Wealth Management Connect' was piloted in the banking system, and investors had a low risk appetite and preferred more stable financial management. However, there are also many investors who have a demand for high-yield investment, and brokerages are more professional in their investment advice on high-yield and high-risk products, which will complement the business territory of the Cross-boundary Wealth Management Connect. ”
A Hong Kong brokerage practitioner also said: "Brokerage companies operate in the market, have the ability to independently develop and design products, and at the same time have diversified wealth management products, which can provide customers with efficient investment management portfolios." As a participant in the Cross-boundary Wealth Management Connect, the new securities firms not only bring more choices to investors, but also provide them with transaction convenience, reduce investment costs, and help investors maintain and increase their assets, so as to achieve the expected policy objectives of the Cross-boundary Wealth Management Connect.
At the same time as the participating institutions, there are also investable varieties.
According to the Consultation Paper, the scope of eligible products under the Cross-boundary Wealth Management Connect will be expanded.
In the scope of investment products under the Northbound Scheme, RMB deposit products from Mainland banks will be added. At the same time, the scope of public offering **investment** of "'R1' to 'R3' risk level" will be expanded to "'R1' to 'R4' risk level" public offering **investment**, excluding commodities***
According to industry insiders, this means that the "Northbound Scheme" investment will cover most of the mainland public offerings**.
For those Hong Kong and Macao investors who can participate in the 'Cross-boundary Wealth Management Connect' business and have a strong risk tolerance, this provides them with more choices of public offerings with rights, and the current A** market investment cost performance is highlighted, which will meet the needs of Hong Kong and Macao investors to allocate A-share public offerings through the 'Cross-border Wealth Management Connect', and on the other hand, it can also attract more allocation funds for the A** market. Guangfa ** relevant person said.
Respond to market needs in a timely manner
Promote the mutual access of financial markets in Guangdong, Hong Kong and Macao
Cross-boundary Wealth Management Connect"2The release of version 0 has received widespread attention and welcome from the industry.
With the continuous enhancement of the Cross-boundary Wealth Management Connect pilot, the number of participants and investment scale of the Cross-boundary Wealth Management Connect are expected to further expand, which will bring new opportunities and inject new momentum into the development of wealth finance business in the Guangdong-Hong Kong-Macao Greater Bay Area. The relevant person in charge of the Guangdong branch of the Bank of China said.
The Cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is the first financial connectivity mechanism for individual investors in China, which is divided into "Northbound Scheme" and "Southbound Scheme".
Since the beginning of this year, the number of investors participating in the Cross-boundary Wealth Management Connect and the scale of fund remittance have increased significantly.
As of September 10, there were 60,000 individual investors in the Guangdong-Hong Kong-Macao Greater Bay Area who had participated in the Cross-boundary Wealth Management Connect, and the amount of cross-border remittance and transfer of funds amounted to 6.7 billion yuan. Among them, since 2023, there will be 1 new number of individual investors in the Guangdong-Hong Kong-Macao Greater Bay Area participating in the Cross-boundary Wealth Management Connect90,000 people, a year-on-year increase of 401%；The amount of cross-border remittance and transfer of funds is 44800 million yuan, a year-on-year increase of 41 times.
At the same time, with the in-depth development of the pilot business, market entities have a strong demand for expanding the scope, product scope and quota of participating pilot institutionsVersion 0 came into being.
For example, the Consultation Paper refines the guidelines for cross-border publicity and sales, adding new cross-border publicity and sales activities that can be carried out by domestic sales agencies and domestic cooperative institutions.
A banking practitioner told reporters: "Previously, cross-border business development was more limited, and mainland banks could not go to Hong Kong and Macao to do product promotion, according to 2Version 0, there is more room for cross-border business. ”
GF** believes that this "expansion" will help attract more investors to use the "Cross-border Wealth Management Connect" to achieve diversified asset allocation and accelerate the development of the wealth management market in the Greater Bay Area. At the same time, it will also enhance the market attractiveness of the Cross-boundary Wealth Management Connect business, which is conducive to further leveraging the important role of the Cross-boundary Wealth Management Connect in promoting the interconnection of financial markets in Guangdong, Hong Kong and Macao.
Southern ** reporter Tang Liuwen, Zhang Yan, Chen Ying, Li Hualian.