The Greater Bay Area project is set to feel some tailwinds with the launch of a new wealth management pilot scheme that will allow cross-border product access.
Two offshore centers – Hong Kong and Macau – alongside nine southern mainland cities will have access to financial products in each other’s access, according to a «Reuters» report citing an official statement, in a new pilot scheme called «Wealth Management Connect».
The People’s Bank of China and the central banks of Hong Kong and Macau will pilot the scheme with adjustable investment quotas with cross-border remittances conduct in yuan and currency conversions executed offshore.
Expanded Product Universe
Though no additional details have been unveiled, industry players are anticipating immediate access to a more diversified range of products. At DBS, its group head of treasury and markets Andrew Ng predicted that the initial stages could potentially include the introduction of currency-linked products, unit trusts and equity-linked investments.
An official launch date for the «Wealth Management Connect» scheme will be announced at a later point in time.
GBA Progress
The Greater Bay Area (GBA) in southern China has been earmarked as a major economic project to encourage further integration via cross-border flow of capital and people. Although representing just a region in China, the size of GBA's economy is estimated to be similar to that of Australia or South Korea.
«It represents a major breakthrough in Hong Kong’s offshore renminbi business development and a significant step to foster closer financial cooperation in GBA,» said Eddie Yue, chief executive of the Hong Kong Monetary Authority, in a separate statement.
