The Hong Kong Monetary Authority (HKMA) said earlier this week that the 19 southbound and northbound participating banks include the Hong Kong arms of the big four state-owned China banks, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank.
Other banks include Bank of Communications (Hong Kong), China Citic Bank International, China Minsheng Banking, Citibank, CMB Wing Lung Bank, Hang Seng Bank, HSBC, Industrial Bank, Nanyang Commercial Bank, OCBC Wing Hang Bank, Shanghai Pudong Development Bank, and Standard Chartered Bank.
The Bank of East Asia, Dah Sing Bank, and DBS Bank will only launch southbound services, according to the HKMA.
“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,” said Eddie Yue, chief executive of HKMA.
“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.”
To provide WMC services, Hong Kong banks should 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 set out in September.
In Shenzhen, the sub-branch of the People’s Bank of China announced a list of 20 “pioneering” banks to offer southbound and northbound scheme services in the city. They include the Shenzhen branches of the Big Four state-owned banks, Bank of Communications, and Postal Savings Bank of China.
The WMC was launched in early September, which allows eligible mainland, Hong Kong and Macao residents in the Greater Bay Area to invest in wealth management products distributed by banks in each other’s market, through a closed-loop funds flow channel established between their respective banking systems.
