Wealth "Connect" Scheme Gets A Makeover

Editorial Staff

30 November 2023

The cross-border Wealth Management Connect scheme linking Hong Kong, mainland China and Macao will expand eligibility to more Greater Bay Area residents, widen its range of products and lift investment limits for individuals.

The “Connect” scheme was launched in 2021 in a bid to expand the GBA’s wealth management market, with a particular focus on mass-affluent and high net worth clients. It has coincided with Beijing’s push to integrate Hong Kong, for example, more closely into the rest of China.

“We believe that by continuing to refine the eligibility criteria of investors, enhance promotion and sales arrangements, expand product type and increase the individual investor quota, the WMC will provide investors in the GBA greater convenience, choices, and flexibility to participate in cross-boundary investments, which are key to driving participation in the long run,” Daniel Chan, head of Greater Bay Area, HSBC, said in a statement on Friday. “As travel between Hong Kong and mainland China continues to increase, so does the demand for cross-border banking and financial services. Investors not only look for wealth accumulation, but also have strong awareness of health protection and wellbeing. The new trend will also create opportunities for the financial services industry.”

The Hong Kong Monetary Authority said measures include refining the eligibility criteria of investors to encourage more Greater Bay Area citizens to take part; expanding the scope of participating institutions to include eligible securities firms, so they can distribute investment products and provide relevant services; expanding the scope of southbound and northbound eligible products to “better meet” the demand of GBA residents for diversified investments; and increasing the individual investor quota as appropriate; and enhance promotion and sales arrangements.

The scheme allows 24 banks, including HSBC, Standard Chartered and Bank of China (Hong Kong), to sell Hong Kong investment products to the residents of the zone’s mainland cities through 31 banking partners (source: South China Morning Post, 28 September).

“The financial regulators in the mainland, Hong Kong and Macao will revise and refine the relevant implementation details and operational guidance with a view to implementing the above measures as soon as practicable,” HKMA said.