On 26 February, the newly revised Implementation Rules for the Cross-boundary Wealth Management Connect Pilot Program in the Guangdong-Hong Kong-Macao Greater Bay Area (hereinafter referred to as the "Implementation Rules") came into effect, marking the "Cross-boundary Wealth Management Connect" 2Version 0 is launched. Compared with the Cross-boundary Wealth Management Connect1Version 0, 2Version 0 has been optimized and upgraded in terms of investor access conditions, scope of participating institutions, scope of qualified investment products, and individual investment quota. According to the Implementation Rules, a number of banks have responded quickly and significantly expanded the scope and quantity of products.
The reporter learned from Hang Seng Bank that the number of eligible "Cross-boundary Wealth Management Connect" investment products it provides to investors will increase to more than 320, an increase of nearly 100% compared with the official launch in 2021. Among them, Hang Seng China's Southbound products include the latest SFC-authorised investment in Greater China** as a Eligible Product Category. Among the "Northbound Scheme" products provided by Hang Seng China, the risk level of public **investment** has been expanded from "R1 to R3" to "R1 to R4" (excluding commodities*** covering different asset classes, and RMB deposit products issued by Hang Seng China have been added.
HSBC announced that it will increase the individual investment quota to a maximum of RMB3 million, allowing mainland residents in the Greater Bay Area who meet the new requirement of "an average annual income of not less than RMB400,000 in the past three years" to participate in the Southbound Scheme, and significantly expand the scope and quantity of products.
In addition, DBS added more than 100** and bond products. DBS will offer more than 220 wealth management products to Southbound investors, including bonds, renminbi, Hong Kong dollar and foreign currency deposits.
With the implementation of the new version of the Detailed Implementation Rules, a number of foreign banks have expressed optimism about the development opportunities and prospects brought about by the Cross-boundary Wealth Management Connect. According to a survey released by HSBC on 26 February, about two-thirds of respondents said that the enhancements in the Implementation Rules such as relaxing entry thresholds, increasing investment quotas and expanding product selection will attract them to participate in or increase their investment in the WMC.
The entry into force of the new version of the Implementation Rules has brought new impetus to the growth of cross-border investment and the integration of financial markets among residents in the Greater Bay Area. Chen Qingyao, Deputy President of HSBC China and General Manager of the Greater Bay Area Office, said.
The Cross-boundary Wealth Management Connect has brought new development opportunities to the wealth management industry. Li Hualun, Head of Wealth Management and Personal Banking of Hang Seng Bank, said that in 2023, the number of account openings under the Hang Seng Southbound Connect will increase by more than three times year-on-year. The new enhancement measures not only respond to the needs of investors, but also contribute to the development of Hong Kong's offshore RMB market, further consolidating Hong Kong's position as an international financial centre and a global offshore RMB business centre.
Relevant data show that by the end of 2023, there are 67 banks in the Guangdong-Hong Kong-Macao Greater Bay Area90,000 individual investors participated in the pilot project of the "Cross-boundary Wealth Management Connect", and handled a total of 12.8 billion yuan of cross-border remittances and transfers. In 2023, the amount of cross-border remittance and transfer of funds related to the cross-boundary wealth management connect pilot will be 105900 million yuan, a year-on-year increase of 38 times.
According to industry insiders, the implementation of the new version of the "Implementation Rules" will further enhance the convenience of the "Cross-boundary Wealth Management Connect" business pilot, expand the scope of participants and products, expand the coverage of policies, promote the interconnection of financial markets in the Guangdong-Hong Kong-Macao Greater Bay Area, and better support the Greater Bay Area to build a high-quality living circle. Reporter Zhang Mo Li Yuyou.
*: Economic Information Daily.