HK supports new work office


Bay area investment mechanism set

The Monetary Authority today published the implementation details for the Cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area.   Promulgated in conjunction with the authority’s Mainland and Macau counterparts, the respective documents provide supervisory guidance for the financial industry to carry out the wealth management connect scheme in the Greater Bay Area.   The scheme, which comprises the Southbound Wealth Management Connect and the Northbound Wealth Management Connect, is a mutual market access mechanism for bay area individual investors.   Under the southbound link, residents of bay area Mainland cities can invest in eligible investment products distributed by banks in Hong Kong and Macau by opening designated investment accounts with these banks.   While for the northbound one, Hong Kong and Macau residents can invest in eligible wealth management products distributed by Mainland banks in the bay area by opening designated investment accounts with these banks.   There will be an aggregate quota of RMB150 billion in each direction and an individual investor quota of RMB1 million.   Monetary Authority Chief Executive Eddie Yue noted that individual investors in the three places will be able to invest conveniently in more diversified wealth management products across the boundary.   Apart from offering more investment options, the scheme also creates opportunities for the banking and wealth management industry. In addition, it will promote the cross-boundary circulation and use of the renminbi, further consolidating Hong Kong’s role as the global hub for offshore renminbi.   At a press conference this afternoon, Monetary Authority Deputy Chief Executive Edmond Lau said he expects banks to launch the cross-boundary financial products in October or November, following the promulgation of the implementation details today.   “We need to take some time to vet the applications, and the banks also need to take some time to do their final preparations including testing,” Mr Lau added.