A new survey of regional interest in the recently launched Wealth Connect initiative has found that mainland Chinese investors favour fund products, while investors in Hong Kong and Macau have set their sights more on wealth management products (WMP).
The survey released by HSBC on 1 December looked at the investment demands and preferences of 2300 residents of the Greater Bay Area of Guangdong, Hong Kong and Macau, focusing in particular on individuals with 1 million yuan or more in liquid assets.
The survey found that 91% of mainland respondents and 76% of Hong Kong and Macau respondents were interested in making use of Wealth Connect to engage in cross-border investment.
83% of mainland investors seeking to invest in Hong Kong and Macau favoured fund products, while for 70% it was Hong Kong dollar deposits, for 57% of respondents bonds and 25% deposits in foreign currencies.
With regard to investors in Hong Hong and Macau planning to use Wealth Connect to invest in mainland China, 74% favoured equity WMP’s, 58% fixed income WMP’s and 27% mutual funds.
“Cross-border Wealth Connect will further enrich the product options for investors in the Greater Bay Area,” said Chen Qingyao (陈庆耀) from HSBC’S Greater Bay Operations Headquarters.
“It will enable them to use investments in funds and equity WMP’s to enjoy the benefits of growth in different markets and sectors.
“It is precisely for this reason that our survey has discovered that respondents have an especially strong interest in financial products for emerging sectors that seeing rapid growth, such as tech and clean energy.”