Chief Executive of China's Hong Kong Special Administrative Region Carrie Lam and other guests attend the launch ceremony of the cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area in Hong Kong, Sept. 10, 2021. (Xinhua/Wang Shen)
BEIJING, Sept. 14 (Xinhua) -- China rolled out on September 10 a pilot scheme allowing cross-boundary investment in qualified wealth management products (WMP) by residents in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), reported Xinhua-run Xinhua Finance.
The pilot scheme, officially named Cross-boundary Wealth Management Connect in the GBA, contains southbound connect and northbound connect, allowing residents in the mainland cities of the GBA to purchase qualified investment products sold by banks in Hong Kong and Macao and residents in Hong Kong and Macao to buy qualified investment products offered by banks in the mainland cities of the GBA.
Launched by Chinese central bank, China's banking, securities and foreign exchange regulators and local governments of Guangdong, Hong Kong and Macao, the pilot scheme marks an important step to enhance the financial markets interconnectivity in the GBA and boost construction of the international financial center in Hong Kong, according to the People's Bank of China, the central bank.
As the detailed rules for implementation of the Cross-boundary Wealth Management Connect in the GBA tell, both the net capital inflow ceiling under northbound connect and net capital outflow ceiling under the southbound connect are capped under the total quota of the pilot scheme, which is currently set at 150 billion yuan.
For an individual investor, the pilot scheme sets a one million yuan investment ceiling for their purchasing of qualified investment vehicles or WMPs.
On Monday, Bank of China (Hong Kong) Limited announced that it has applied for starting the GBA Cross-boundary Wealth Management Connect-related business, confident in becoming the first batch of banks to launch the related services. (Edited by Duan Jing with Xinhua Silk Road, email@example.com)