I heard that Wealth Management Connect can also invest in RMB deposit products in the Mainland, so I quickly tried it. Mr. Chan, a resident of Macau, in the Cross-boundary Wealth Management Connect 2After the implementation of the "0" policy, the first RMB deposit of the "Northbound Scheme" was purchased through the mobile banking of the Bank of China in China** as soon as possible.
Since 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") have come into effect. The "Implementation Rules" have been optimized and adjusted in terms of investor access conditions, the scope of participating institutions, the scope of qualified investment products, and the quota of individual investors, which is known in the industry"Cross-boundary Wealth Management Connect 20”
The Cross-boundary Wealth Management Connect is of great significance to promoting mutual access of financial markets in the Greater Bay Area and promoting the two-way opening up of the Mainland's financial market. Lin Yuandong, Chief Executive Officer of Standard Chartered Bank Greater Bay Area, said. "Cross-boundary Wealth Management Connect 2The launch of "0" will be conducive to the expansion of the cross-boundary wealth management connect business scale and the development of the cross-border wealth management market in the Greater Bay Area. The Financial Times reporter learned that on the first day of the new regulations, investors participated enthusiastically, and various financial institutions ushered in many new and old customers to "try it". To tie in with the Cross-boundary Wealth Management Connect 2A number of Chinese and foreign banks are actively promoting the expansion of related products and service upgrades to better meet the diversified asset allocation needs of investors and seize the new development opportunities of the cross-border wealth management market in the Greater Bay Area. Lower the threshold, increase the quota, and expand the product
The Cross-boundary Wealth Management Connect has been enhanced and upgraded
In 2021, the Cross-boundary Wealth Management Connect was first launched in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and has been well received by investors, with steady growth in business scale over the past two years. According to data from the People's Bank of China, as of 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 "Cross-boundary Wealth Management Connect", and handled a total of 12.8 billion yuan of cross-border remittance and transfer of relevant funds, and the market value balance of "Cross-boundary Wealth Management Connect" reached 5.1 billion yuan at the end of the year, an increase of 668%. "Cross-boundary Wealth Management Connect 20" will further facilitate cross-border investment by residents of the Greater Bay Area. Specifically, the new revised version will further improve the convenience of investors to participate in the business pilot by lowering the threshold, increasing the quota and expanding the products. The first is to lower the barriers to entry for investors. The Detailed Implementation Rules lower the threshold for Mainland investors to participate in the Southbound Scheme from "five consecutive years" to "two years", and adds "an average annual income of not less than RMB400,000 in the past three years" as one of the alternative conditions for access to household financial assets. The second is to appropriately increase the quota of individual investors. The Implementing Rules increase the investment quota for a single investor from RMB1 million to RMB3 million. If an individual participates in the pilot through a bank and a ** company at the same time, the two channels can have a quota of 1.5 million yuan each. In addition, the Cross-boundary Wealth Management Connect 2The "0" version also expands the scope of business pilots in many ways. First, the scope of participating institutions has been expanded. Increase the participation of ** companies in the pilot, and clarify their participation methods and related business arrangements. The second is to expand the scope of eligible products. In the scope of investment products under the Northbound Scheme, RMB deposit products from Mainland selling banks will be added. At the same time, the scope of public investment will be expanded from "'R1' to 'R3' risk level" to "'R1' to 'R4' risk level" (except for high-risk commodities***). "There are many high-net-worth customers in the Guangdong-Hong Kong-Macao Greater Bay Area, and there is a strong willingness to diversify asset allocation. Wang Wei, a researcher at the Greater Bay Area Financial Research Institute of Bank of China Shenzhen Branch, said, "Cross-border Wealth Management Connect 2After the implementation of "0", the attractiveness of the products of various institutions will be further enhanced, the investment customer base and business scale will reach a new level, and the continuous development of financial interconnection and cross-border wealth management market in the Greater Bay Area will be accelerated. The product shelves are synchronized with "new".
A number of banks have responded positively to the new policy
In line with the Cross-boundary Wealth Management Connect 20", a number of Chinese and foreign banks are actively promoting the expansion of related products and service upgrades. "Under the new optimization measures,CCBActively prepare for system upgrades, product supply and other aspects of work. The person in charge of the relevant department of China Construction Bank told reporters. As a representative of major state-owned banks, CCB has always attached great importance to the development of the Greater Bay AreaAfter the release of "0", the bank comprehensively iteratively upgraded the system to support the adjustment of customers' investment quotas, while continuing to increase product supply, enrich product shelves, and organize Bay Area institutions to reorganize and optimize business handling processes to improve business processing efficiency. A number of foreign banks are also vying to upgrade their services to better meet the diversified needs of investors. HSBC ChinaSignificantly expand the scope and number of products to provide a total of about 250 low- to medium-high risk products for Northbound and Southbound investors, including more than 100 Southbound Schemes for overseas investment** to support more GBA residents to participate in the pilotHang Seng BankIt has also expanded the scope of eligible investment products, lowered the entry threshold for investors, and increased the individual quota for investors to meet the growing wealth management needs in the region. Starting from 26 February, Hang Seng Bank will offer investors more than 320 eligible WMC investment products, an increase of nearly 100% from the official launch in 2021. Standard Chartered BankThe number of wealth management products under the Southbound Scheme has increased to nearly 550, covering medium- and high-risk** and low-tomedium-risk bonds. Under the Northbound Scheme, RMB deposit products and more than 40 publicly offered investments** with a risk rating of "R4" have been added, covering new economy sectors such as new consumption and new energy. Commercial banks plan to further upgrade their services. CCB said it would start from four aspectsCreate a unique "Cross-boundary Wealth Management Connect" service:One isDo a good job of potential customer data insightsThe second isFormulate a comprehensive service plan for customer groupsThe third isDo a good job in domestic and overseas integrated servicesFour areStrengthen the publicity of the Cross-boundary Wealth Management Connect. "Our bank will give full play to the advantages of the group, coordinate domestic and foreign institutions, promote the application of global account functions, and optimize the service connect plan. In line with regulatory requirements, we will step up product innovation under the Cross-boundary Wealth Management Connect, further enrich the rights and interests of customers, and formulate comprehensive service solutions." The relevant person in charge told reporters. Investors are eager to "try it out".
The convenience of asset allocation is improved
I am an old customer of the Cross-boundary Wealth Management Connect, and since the new regulations have been issued, I have been keeping an eye out for new products that can be purchased. On February 26, at the Standard Chartered Tianhe Sub-branch in Guangzhou, Ms. Cheng was purchasing the newly launched "Cross-boundary Wealth Management Connect" and "Southbound Connect" products. She told reporters, "Cross-boundary Wealth Management Connect 20" further broadens the range of investable products and helps her better allocate global assets. According to HSBC's GBA Cross-boundary Wealth Management Connect survey, "Cross-boundary Wealth Management Connect 20" will help to increase the attractiveness of this cross-border investment mechanism. About two-thirds of the more than 2,000 residents of the 11 GBA cities indicated that the enhancements in the Implementation Rules, such as relaxing entry thresholds, increasing investment quotas and expanding product selection, would 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, Vice President and General Manager of HSBC China's Greater Bay Area Office, said that the survey showed that in addition to market opportunities and diversified investment needs, in-depth understanding of products and professional wealth planning and advisory services are also important considerations for respondents to participate in or increase investment. To this end, HSBC China will continue to enrich its products, expand the size of its service team and introduce professional intelligent wealth management tools to help investors in the region seize the opportunities brought by the new regulations. "Since the launch of the Cross-boundary Wealth Management Connect, Standard Chartered customers have responded enthusiastically, with the number of participants and remittance amounts increasing steadily, demonstrating the strong demand from GBA residents for quality financial services and diversified asset allocation. Lin Yuandong said that in 2023, the remittance amount of Standard Chartered customers' "Cross-boundary Wealth Management Connect" and "Southbound Scheme" will increase by 5 times compared with 2022, which will accelerate the development of the bank's business in the Greater Bay Area0" to further promote the growth of wealth management business in the Greater Bay Area. "The new enhancement measures not only respond to the needs of investors, but also facilitate 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. In 2023, the number of accounts opened under the Hang Seng Southbound Connect has increased by more than three times year-on-year, bringing new development opportunities to the wealth management industry. Everybody is watching
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**: Financial Times client.Reporter: Yu Jiaxin.
Editor: Yang Zhiyuan.
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