Following the plenary meeting of the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area today (6 November), a series of measures is announced to promote the development of the Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area), including exploring the establishment of a cross-boundary wealth management connect scheme. The Hong Kong Monetary Authority (HKMA) welcomes the announcement.
Mr Eddie Yue, Chief Executive of the HKMA, said, “the establishment of a cross-boundary wealth management connect scheme will be another major policy breakthrough for the development of the Greater Bay Area, marking a new milestone in the mutual access of financial markets between the Mainland and Hong Kong. I believe that establishing the two-way wealth management connect scheme will create new business opportunities for the financial industry, and provide more options of wealth management products for residents of the two places. It will also further facilitate the cross-boundary flows and use of renminbi (RMB), thereby reinforcing Hong Kong’s position as the global hub for offshore RMB business and the intermediary for capital flowing into and out of the Mainland. We will actively formulate the relevant details with the Mainland authorities and the industry, with a view to launching the scheme as soon as practicable.”
To meet the cross-boundary wealth management needs of residents in the two places, the HKMA and the Mainland authorities will explore the establishment of a two-way wealth management connect scheme. Based on the premise of ensuring proper management of risks and protection of investors, the scheme will enable residents of Hong Kong and Mainland cities in the Greater Bay Area to invest in wealth management products in each other’s market through the banking systems. We will draw on successful experience of the existing mutual market access schemes in devising the relevant management requirements. The HKMA is going to engage the Mainland authorities and the industry in in-depth discussions to formulate the implementation details as early as practicable.
Hong Kong Monetary Authority
6 November 2019