The Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (“Cross-boundary WMC”) is one of the key initiatives under the mutual market access schemes between the capital markets of Hong Kong, Macao and the Mainland. The scheme was launched in September 2021, allowing eligible Mainland, Hong Kong and Macao residents in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) to invest in wealth management products distributed by banks in each other’s market through a closed-loop funds flow channel established between their respective banking systems. A major breakthrough of the Cross-boundary WMC is the considerable degree of flexibility given to individual retail investors to open and operate cross-boundary investment accounts directly, through a formal and convenient channel, and to choose their preferred products.
The Cross-boundary WMC consists of the Southbound Scheme and the Northbound Scheme. The Southbound Scheme refers to eligible residents in the Mainland GBA cities investing in wealth management products distributed by banks in Hong Kong and Macao via designated channels. The Northbound Scheme refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by Mainland banks via designated channels. For the initial stage, the product scope under the Cross-boundary WMC mainly covers relatively simple wealth management products of low-to-medium risk. Investors are required to open one bank account with cross-boundary remittance function (“dedicated remittance account”) and one bank account with investment function (“dedicated investment account”) with banks in their place of residence and the other market respectively, and have the two accounts paired with each other. Cross-boundary renminbi fund flows are subject to closed-loop and quota management.
The Cross-boundary WMC will create new business opportunities for the financial industries in the three places, facilitate cross-boundary investment and provide more options of wealth management products for residents in the GBA, thereby further promoting the cross-boundary circulation and use of renminbi.
Please also refer to the relevant Chin Family webpage of the Investor and Financial Education Council (“IFEC”) and the dedicated webpage of the Guangzhou branch of the People’s Bank of China (“PBoC”) (available in Chinese only) for an overview of the Cross-boundary WMC.