Shanghai Commercial Bank, Chong Hing Bank, Chiyu Banking Corporation have been approved to provide both “southbound” and “northbound” trading services.
Taiwan-based Fubon Bank (Hong Kong) is allowed to offer only southbound services, while China Everbright Bank will only provide northbound services.
The banks can start providing cross-boundary wealth management connect (WMC) services together with their mainland partner banks from today.
“Banks in Hong Kong which intend to embark on cross-boundary WMC activities should put in place systems, internal control measures and complete relevant systems testing, and submit a self-assessment to the Hong Kong Monetary Authority (HKMA) prior to the launch of such activities in accordance with the requirements in the Implementation Arrangements,” said the central bank.
So far, 19 banks in Hong Kong can provide northbound services, which allow eligible Hong Kong and Macau investors to access wealth management products distributed by mainland banks.
A total of 23 banks have been approved for southbound services, allowing eligible investors on the mainland in the Greater Bay Area (GBA) to invest in eligible wealth management products distributed by banks in Hong Kong and Macau.
The first list of 19 banks, including the Hong Kong arms of the big four state-owned China banks, was announced in late October last year.
The WMC was launched in early September 2021, which allows eligible residents in the GBA to invest in wealth management products through a closed-loop funds flow channel established between their respective banking systems.
As of the end of 2021, over 5,800 transactions worth RMB486m ($76.5bn) took place in the northbound and southbound channels of the programme, according to the People’s Bank of China, Guangzhou Branch.
Almost one-third of the 22,000 investors who have participated in the scheme are from mainland provinces, such as Guangzhou, Shenzhen, Dongguan.
About 70% of the 14,000 northbound investors are Macau residents, while the remaining 30% are from Hong Kong, the central bank branch added.