Shenzhen investors have shown great zeal for cross-border investment as 20 designated pilot banks in the city Tuesday officially launched the Cross-boundary Wealth Management Connect (WMC) Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
As of 5:30 p.m. Tuesday, the banks had opened a total of 578 WMC accounts. Among them 416 were Southbound Scheme investment accounts set up by mainland individual investors, remitting investment funds totaling 2.83 million yuan (US$444,000). The Southbound Scheme refers to eligible residents of nine Guangdong cities investing in financial products distributed by banks in Hong Kong and Macao via designated channels.
The banks had also helped Hong Kong and Macao retail investors open 162 Northbound Scheme WMC accounts, which refer to eligible residents in Hong Kong and Macao investing in wealth management products distributed by mainland banks via designated channels. The accounts involved investment funds totaling 2.536 million yuan, according to statistics from the Shenzhen branch of the People’s Bank of China.
A resident surnamed Xie from Shenzhen Qianhai Institute of Financial Management is among the mainland investors participating in the Southbound Scheme. He said he has always been interested in Hong Kong investment products, but he couldn’t find a convenient channel. “At the news of the WMC scheme launch, I came here today and have a very smooth cross-border investment experience,” said Xie.
“I have strong confidence in the mainland investment market,” said Leung, a Hong Kong resident who opened a Northbound Scheme account at one of Bank of China Hong Kong branch’s outlets Tuesday. “Previously, I could only put money into time deposits in mainland banks, but now I have much more choices.”
“The whole process is very convenient and quick,” he said.
The WMC Pilot Scheme was officially put into operation Tuesday, with the first batch of banks participating in the program in the Chinese mainland, Hong Kong and Macao providing related services.
The scheme is the first cross-border program focusing on the GBA which aims at facilitating cross-border investment by individual residents in the GBA and promotes the opening up of the Chinese mainland’s financial markets as well as the mutual social and economic development of the mainland, Hong Kong and Macao.