Guangdong-Hong Kong-Macao Greater Bay Area “Cross-border Wealth Management” comes with a single investor limit of 1 million yuan
2021-09-12 10:18:40Source: Shanghai Securities News
“Cross-border Financial Link” was officially launched. On the afternoon of September 10th, the People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, Foreign Exchange Bureau, Guangdong Provincial People’s Government, Hong Kong Special Administrative Region Government and Macao Special Administrative Region Government jointly held the launching ceremony of the “Cross-border Financial Link” business pilot through video connection . Guangdong, Hong Kong and Macao simultaneously issued the “Implementation Rules for the Pilot Project of “Cross-border Wealth Management” in the Guangdong-Hong Kong-Macao Greater Bay Area.”
Pan Gongsheng, deputy governor of the People’s Bank of China, stated that the “Cross-border Wealth Management” pilot program has opened up a new channel for individual cross-border investments by residents in the Greater Bay Area, Hong Kong and Macau, and will further facilitate the enjoyment of quality financial services by residents in the Greater Bay Area and promote the three regions of Guangdong, Hong Kong and Macau. In-depth integration of residents’ lives; further promote the interconnection of the financial markets of the Mainland, Hong Kong and Macau, and enhance the two-way openness of China’s financial markets; further inject new vitality into the development of the Hong Kong and Macau financial industry, and promote the construction and development of Hong Kong as an international financial center.
The “Cross-border Financial Link” business supports the cross-border investment of eligible investment products sold by banks in the Greater Bay Area, Hong Kong and Macao residents, and can be divided into “Southbound Link” and “Northbound Link” according to the identity of the investor.
“Southbound connection” refers to residents in the Guangdong-Hong Kong-Macao Greater Bay Area through opening investment accounts with banks in Hong Kong and Macau to purchase eligible investment products sold by banks in Hong Kong and Macau; Open an investment account and purchase eligible investment products sold by mainland banks.
Which investors can participate in “Southbound Link” or “Northbound Link”? Which products are available for relevant investors to purchase?
The implementation rules clarify that mainland investors carrying out “Southbound” business must meet the following conditions: have full capacity for civil conduct; have household registration in 9 cities in the Guangdong-Hong Kong-Macao Greater Bay Area or have continuous payment of social security or Personal income tax for at least 5 years; with more than 2 years of investment experience, and the monthly balance of household financial net assets in the last 3 months is not less than 1 million yuan, or the monthly balance of household financial assets in the last 3 months is not less than 2 million yuan .
Hong Kong and Macau investors who carry out the “Northbound Link” business should meet the relevant requirements set by the Hong Kong and Macau financial regulatory agencies, and the Hong Kong and Macau investor business qualifications will be verified by the Hong Kong and Macau Cooperative Bank.
Pan Gongsheng said that in the process of formulating the implementation rules for the “Cross-border Financial Link” pilot program, great importance was attached to investor experience and the protection of investor rights and interests. After the pilot is launched, the mainland financial management authorities will work closely with Hong Kong and Macao financial regulators in areas such as information sharing and investor protection, and jointly provide policy support and guarantees for the smooth operation of the pilot.
“Considering the general investors’ awareness of the two geographic financial products, product characteristics and acceptable risk levels, etc., the initial stage will cover relatively low-risk and relatively simple financial products. Therefore, some structured products or derivatives (such as Futures, options) and other products will not be included in the initial stage of the eligible scope.” said Liu Yingbin, vice president of the Hong Kong Monetary Authority.
Liu Yingbin said that “Northbound Link” eligible wealth management products will cover public funds and fixed income (mainly invested in bonds and deposits) and equity (mainly invested in stocks) publicly offered wealth management products that are defined as low-to-medium risk; “Nanxiangtong” eligible wealth management products mainly include deposits (but not structured deposits), low-to-medium risk and non-complex bonds, and funds registered in Hong Kong and approved by the Hong Kong Securities Regulatory Commission.
“Cross-border Financial Link” implementation rules are clear, “Northbound Link” cross-border capital net inflow upper limit and “Southbound Link” cross-border capital net outflow maximum limit does not exceed the “Cross-border Financial Link” business pilot total limit, the current total The degree is tentatively set at 150 billion yuan. At the same time, the “Cross-border Financial Link” business pilot implemented quota management for individual investors, with an investment quota of 1 million yuan.
Ba Shusong, executive dean of the HSBC Financial Research Institute of Peking University and chief economist of the China Banking Association, said that relying on the successful practice of Connectivity in the stock and bond markets, “Cross-border Finance Link” will further extend the opening of the financial market to a larger scale. Bank wealth management products with larger and wider customer coverage are further advancements in the opening up of China’s financial market. It also shows China’s clear policy direction for continuing to promote the opening of the financial market, providing new opportunities for domestic and foreign financial institutions to participate in China’s wealth management market and asset management. Growth drivers.
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