Hong Kong

Hong Kong and China Regulators Update Investment Framework in Greater Bay Area

The People's Bank of China and the Securities and Futures Commission of Hong Kong have updated the implementation guidelines for the Wealth Management Connect (WMC) pilot program in the Greater Bay Area (GBA).

This update permits certain qualified corporations to engage in the WMC program across the boundary, encompassing nine cities in Guangdong, as well as Hong Kong and Macau, reported Fund Selector Asia.

Key changes include the expansion of permissible investments to encompass more high-risk options and clearer guidelines for marketing and sales. Additionally, the update raises the investment limit per individual to RMB 3 million ($422,500), tripling the previous amount.

Initiated in 2021, the WMC scheme aims to enhance the wealth management sector in the GBA, targeting affluent and wealthy clients. This initiative aligns with China's efforts to more tightly integrate Hong Kong with the Mainland.

Before participating in any cross-boundary WMC activities, eligible corporations must collaborate with a Mainland broker to complete necessary preparations, including system setup. Following clearance from the SFC, these corporations can operate under the Southbound Scheme, the Northbound Scheme, or both.

These revised rules are scheduled to take effect on 26 February 2024.