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HSBC: Wealth Management Connect expansion drives investment

Around two-thirds of respondents to HSBC's survey said they plan to boost investment via WMC on the back of today's enhancements.
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About two-thirds of respondents to a survey from HSBC on Wealth Management Connect (WMC) plan to boost their investment via the cross-border trading link following enhancements that came into effect today.

As of today, investors using WMC are able to invest up to Rmb3m ($420,000) compared with Rmb1m previously, while the scope of available products has been widened among other changes.

WMC was launched to much fanfare in 2021 with the aim of expanding the wealth management markets in the Greater Bay Area, an area on China’s southern coast comprising Hong Kong, Macau and Guangdong.

Previously, the only way for Hong Kong and Macau-based investors to purchase wealth management products distributed in mainland China or vice versa was to set up brokerage accounts in the respective markets.

Under WMC, investors are able to purchase wealth management products by going directly through brokers in their home markets via the trading link.

HSBC canvassed the opinions of 2,000 respondents in 11 cities in the Greater Bay Area. On average, respondents tend to allocate about Rmb710,000 to the scheme and are targeting an annual return of 7.7%.

Energy, technology, natural resources, biotechnology and finance are the most preferred sectors for investment, it said.

HSBC also announced that it had enhanced its product offering on the back of the scheme’s expansion including increasing the number of wealth management products to more than 400 including over 100 mutual funds.

Part of the Mark Allen Group.