Greater Bay Area on Track to Launch Wealth Management Connect Trials
The monetary authorities for the Guangdong-Hong Kong-Macau Greater Bay Area have unveiled plans to launch trials for allowing cross-border investment in asset and wealth management products.
On June 29 the People’s Bank of China (PBOC), Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macau (MAM) issued a joint statement announcing their decision to undertake “Cross-border Wealth Management Connect” (跨境理财通) trials in the Greater Bay Area.
According to the announcement the trials will involve both a “Southbound Connect” and a “Northbound Connect” scheme.
Southbound Connect will permit mainland Chinese to invest in Macau and Hong Kong investment products via special investment accounts opened with Macau and Hong Kong banks, while Northbound Connect will allow Macau and Hong Kong residents to purchase mainland Chinese wealth management products by opening special investment account with mainland Chinese banks.
The authorities said that Wealth Management Connect is an “important measure” for advancing cooperation between the mainland Chinese, Hong Kong and Macau financial sectors, and be of major benefit to “expediting the convenience of Greater Bay cross-border investment; expediting the external opening of China’s financial markets, and expediting the common social and economic growth of the mainland and Macau and Hong Kong.”
According to the Announcement trials will be officially launched following the “completion of relevant rules and the construction of systems,” with a specific timeframe and by-laws to be stipulated separately.