Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

China launches long-awaited Wealth Connect, wrapping in HK, Macau

Stock MarketsSep 10, 2021 06:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Reuters. FILE PHOTO-A men wearing a mask walk by an electronic board showing the Shanghai and Shenzhen stock indexes in Shanghai, China, as the country is hit by an outbreak of a new coronavirus, February 3, 2020. REUTERS/Aly Song 2/2

By Scott Murdoch and Samuel Shen

SHANGHAI (Reuters) -China kicked off on Friday a long-awaited scheme, called Wealth Management Connect, that links its southern province of Guangdong with Hong Kong and Macau, as Beijing moves to pull the two territories closer.

The cross-boundary scheme will initially bring combined fund flows of 300 billion yuan ($46.53 billion) in the three areas together known as the Greater Bay Area (GBA), the Hong Kong Monetary Authority (HKMA) said.

"The scheme will not only offer more investment options for individual GBA investors but also create new opportunities for the banking and wealth management industry in the three places," HKMA chief executive, Eddie Yue, said in a statement.

It will also promote cross-border use of the Chinese currency, strengthening Hong Kong's role as the global hub for offshore yuan, Yue added.

Twenty Hong Kong banks have expressed interest in participating, said HKMA's deputy chief executive Edmond Lau.

"If the scheme proves popular we could increase the quotas so regulators will have a pragmatic approach," he told a media briefing.

Global banks and asset managers hailed the launch.

"The WMC scheme is a key milestone in China's financial market liberalisation," said Elisa Ng, Hong Kong head of J.P. Morgan Asset Management, which has been preparing for the pilot program since it was announced in June last year.

Sebastian Paredes, chief executive of DBS Hong Kong, expects the region to provide a quarter of the customers in the bank's Hong Kong Treasures Wealth programme over the next three years.

"We see immense opportunities in expanding our business into China," he added.

Bank of China (Hong Kong) and the Private Wealth Management Association (PWMA) also welcomed the effort.

"We look forward to engaging with relevant authorities on how to expand the scheme’s scope in the future," Amy Lo, who chairs the executive panel of the Association, said in a statement.


China's latest move to further open its financial markets comes ahead of the imminent launch of the southbound-leg of the Bond Connect for mainland investors to buy offshore debt.

The programme enables residents of Hong Kong and Macau to buy mainland investment products sold by banks in the Greater Bay Area, while allowing residents of nine Guangdong cities to buy those sold by banks in the two offshore centres.

Eligible wealth management products for mainland investors in the scheme include deposits as well as equity and bond funds in Hong Kong, the HKMA said.

Mainland China and Macau announced scheme implementation details separately.

Initially, net cash flows in either direction must not exceed 150 billion yuan and the individual investment quota is 1 million yuan.

Similar previous initiatives include Stock Connect and Bond Connect, but Wealth Connect is the first cross-boundary scheme focused on the Greater Bay Area, whose combined gross domestic product is similar to that of Australia or South Korea.

"We believe banks with strong onshore and offshore branches in the GBA will enjoy an advantage when leveraging this opportunity," Jasper Yip, a partner at consultancy Oliver Wyman, said this week.

The news comes days after Beijing gave fresh impetus to developing the region, with new plans for two Guangdong cities, Qianhai and Hengqin.

In 2017, President Xi Jinping unveiled plans to turn the region into an economic powerhouse, and integration appears to be accelerating after China imposed a new security law in Hong Kong last year.

($1=6.4471 Chinese yuan)

China launches long-awaited Wealth Connect, wrapping in HK, Macau

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email