The Hong Kong Monetary Authority (HKMA) has released the list of 19 eligible banks in the country which can launch the cross border Wealth Management Connect (WMC) services.
These banks, together with their respective Mainland partner banks whose eligibility have been confirmed by the regulators, can start providing cross border WMC services together from today onwards.
The WMC was jointly announced by the People’s Bank of China, the Hong Kong Monetary Authority, and the Monetary Authority of Macao to facilitate cross-boundary investment by individual residents in the Guangdong, Hong Kong and Macao Greater Bay Area (GBA).
Through the WMC, residents of mainland cities in the GBA can buy investment products distributed by banks in Hong Kong and Macao by opening designated investment accounts with these banks.
Meanwhile, residents of Hong Kong and Macao can invest in eligible wealth management products distributed by Mainland banks in the GBA as well.
Banks in Hong Kong which intend to embark on cross border WMC activities need to put in place systems, internal control measures and complete relevant systems testing, and submit a self-assessment to the HKMA prior to the launch of such activities in accordance with the requirements in the implementation arrangements.
The regulator said in a statement that it will collaborate with the industry to explore enhancement measures to the scheme as and when appropriate, with a view to providing more growth opportunities for Hong Kong’s banking and wealth management industry.
The HKMA will continue to process the remaining self-assessments and update from time to time the list of eligible Hong Kong banks on the regulator’s dedicated WMC web page.
Eddie Yue, Chief Executive of the HKMA said,
“It gives me great pleasure to see that a number of Hong Kong banks have completed the necessary preparatory work and are ready to start providing Cross-boundary WMC services.
Considering that it will be the first time for retail investors to conduct cross-boundary investments, we will closely monitor the operation of the Cross-boundary WMC and step up investor education and investor protection work together with the industry.”
