The Guangdong-Hong Kong-Macao Greater Bay Area (Greater Bay Area) is ripe for establishing a cross-boundary wealth management connect scheme, according to a statement from the Hong Kong Monetary Authority.
The scheme, which is under evaluation, would enable residents of Hong Kong and mainland cities in the Greater Bay Area to invest in wealth management products in each other’s market through the banking systems.
“[E]stablishing the two-way wealth management connect scheme will create new business opportunities for the financial industry, and provide more options of wealth management products for residents of the two places,” said Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA).
Resulting cross-boundary RMB flows would also boost Hong Kong’s position as the global hub for offshore RMB business, Chan added.
The scheme will be modelled on the existing connect schemes for Hong Kong and China stock and bond markets.
“We will actively formulate the relevant details with the mainland authorities and the industry, with a view to launching the scheme as soon as practicable,” Chan said.
The Greater Bay Area development plan envisions Guangdong Province, Hong Kong and Macao as a high-end manufacturing and innovation hub as well as a testing ground for connectivity across sectors such as financial services, logistics and technology.
Separately, the HKMA recently announced it would integrate ESG and green finance principles into the Exchange Fund investment process and in the selection, appointment and monitoring of the fund’s external managers.