Quota of Cross-boundary Wealth Management Connect can be adjusted: Christopher Hui

The quota of Cross-boundary Wealth Management Connect can be adjusted depending on market response, Secretary for Financial Services Christopher Hui Ching-yu said.

The aggregate quota for the scheme is 150 billion yuan (HK$181 billion) for northbound and southbound respectively.

Hong Kong banks have readied hundreds of products for the new pilot scheme launched on Friday. Products of low to medium risk approved by regulators can be offered as soon as next month.

In a radio program this morning, Hui said the banking industry responds positively towards the wealth management connect and is doing final preparations.

Under Southbound Wealth Management Connect, residents of mainland cities in the Greater Bay Area can invest in investment products distributed by banks in Hong Kong and Macao by opening investment accounts with these banks.

The number of high income households in the Greater Bay Area accounts for one-fifth of the country and that there is a huge demand for financial management within this area, Hui said.

Under the Northbound arrangement, Hong Kong investors should head to mainland themselves to open bank accounts.

Asked if it would discourage people, Hui said he is following up with banks to see how investors can skip the trip.

It is an opportunity for Hong Kong to make good use of its good international connections to provide services through the Cross-boundary Wealth Management Connect while promoting the development of the financial market in the Greater Bay Area.

He added that although it just applies to individual investors at this moment, it could expand to cover the institutional level in the future.

“Asset management companies in Hong Kong are able to reach out to mainland investors without having a relevant license in the mainland, which greatly increased the attractiveness for them to set up here,” Hui said.

He pointed out that connecting with the mainland has always been an important part of local financial development and that there will be new A-share futures products launched in the city for international investors.

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