HONG KONG, Aug. 20 (Xinhua) -- The new breakthrough of financial connect in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) is expected to be an important support for financial prosperity in Hong Kong which is now facing multiple challenges including U.S. pressure, complicated social events and the outbreaking of the novel coronavirus epidemic, said Hui Ching-yu, Secretary for the Financial Services and the Treasury Bureau (FSTB) of the Government of Hong Kong Special Administrative Region, in a recent interview with Xinhua.
In the past few years, innovative financial connect between the Chinese mainland and Hong Kong have benefited the financial industry in international market, the Chinese mainland and Hong Kong, such as the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect and the Bond Connect.
Based on the existing achievements, the cross-boundary wealth management connect in the GBA has already defined the policy framework recently, which became a milestone of financial connectivity in the GBA. Through this fresh wealth management connect, individual residents in the GBA can carry out cross-boundary investment in wealth management products distributed by banks in the area. The move will promote the opening-up of China's financial market and the common development of the Chinese mainland, Hong Kong and Macao, and also open up a broader financial market in the international scope.
Cross-boundary wealth management connect in the GBA will be another fund channel among the Chinese mainland, Hong Kong and Macao, following the Stock Connect and the Bond Connect, Hui said, stressing that Hong Kong will be able to give a full play to its position as a global financial hub. He disclosed the Chinese mainland, Hong Kong and Macao are communicating closely and strive to start the cross-boundary wealth management connect within this year.
He also suggested the Chinese mainland and Hong Kong can optimize the existing connect, and furthermore explore new connecting channels, such as "insurance connect".
According to FSTB, Hong Kong has revised its regulations to provide an ideal base for multinational insurance groups that favor markets in China and Asia. The government will also provide tax concessions at the end of this year or early next year to support insurance industry to seize new opportunities under the Belt and Road Initiative. Meanwhile, relevant departments will also push forward the business of insurance-linked securities to help the industry grasp the GBA's policy opportunity.
Hong Kong should distribute internationalized financial services in the GBA. On the one hand, Hong Kong can promote the development level of the service industry and enhance the technological innovation advantage of the area through diversified capital input. On the other hand, Hong Kong's financial and economic operations will further integrate into the overall development of the country, Hui Ching-yu said. (Contributed by Zhang Huan, edited by Gao Jingyan with Xinhua Silk Road, email@example.com))