China Announces HK & Macau Cross-Border Wealth Management Scheme
(06 July 2020 – China) China has announced a pilot scheme that links investments and financial services between Hong Kong, Macau and nine neighbouring mainland cities.
Wealth Management Connect will grant residents in these cities access to financial products in each other’s markets.
This is part of Beijing’s plan to build a Greater Bay Area (GBA) economic powerhouse in southern China by encouraging cross-border flow of capital and people and further integrating these cities with the mainland.
The People’s Bank of China, Hong Kong Monetary Authority (HKMA), and Monetary Authority of Macao will pilot this new scheme with adjustable investment quotas. Cross-border remittances will be conducted in yuan and currency conversions will be executed offshore.
Other details such as the types of products offered have not been disclosed and the pilot's official launch date would be announced later.
“It represents a major breakthrough in Hong Kong’s offshore renminbi business development and a significant step to foster closer financial cooperation in GBA,” said HKMA chief executive Eddie Yue.