Transboundary fund flows between Hong Kong and the continent are established to accelerate with the imminent launch of the Wealth Connect administration and trade in the southern direction of the Bond Connect, seven years after the start of the historical population "through of the train "from the Shanghai-Hong Kong Connect, followed by the action of Shenzhen-Hong Kong Connect in 2016.
The WMC pilot scheme was promulgated on June 29 last year, two days before 23 anniversary of Hong Kong's return to the homeland. . The Investment Plan: The first project of this type destined to promote economic integration in the Greater Guangdong-Hong Kong-Macao Bay Area: allows Hong Kong and Macau residents, as well as the nine provincial cities of Guangdong in the Cluster of 11 cities, to buy low -Risk Investment products were sold reciprocally on banks in the Bahia Bay Area.
The Popular Bank of China, the Monetary Authority of Hong Kong and the Monetary Authority of Macao have established an aggregate investor of 150 billion yuan ($ 23.1 billion) in each direction - South and towards the North. But financial analysts consider that the total share of aggregate investors of 300 billion yuan, with an individual quota of 1 million yuan, is less than 10 percent of the gross savings of the population of the largest area of The bay of more than 72 million. Therefore, it is likely that fees are taken quite quickly, as long as the products meet the needs of specific investors.
"The WMC represents another step forward in the linking of the financial markets between Hong Kong and the continent following the connectivity programs in the stock markets and bonds," said the Assistant President of CPA Australia, Eden Wong.
"This will make residents in the largest bay area more willing to use the Renminbi as an investment currency. It will boost cross-border renminbi capital flows, accelerating the internationalization of the currency and the Opening of the financial sector of the nation, "he told China daily.
Freddie Chui, Customers and Industries of National FSI and Leader in Deloitte China, agreed that a more widespread use in cross-border financial services, such as the management of wealth, will promote financial integration between Hong Kong and the continent.
"The multi-jurisdiction investor protection platform mentioned in the Memorandum of Understanding or N The launch of the Limit Rich Wealth Management Management Plan, the pilot scheme also reflects a financial integration Closer in the region, "he said.
Allowing the protection of multi-jurisdiction investors will also support the launch of other transboundary financial. The services in the Greater Bay area, such as insurance, Chui said.
Mutual fund companies in Hong Kong are increasing investments in the Greater Bay area for a Slice of WMC. According to a survey conducted by the Hong Kong Investment Funds Association, approximately 95 percent of the 1,036 continental residents (those with a monthly household income of more than 20,000 yuan or with more than 500,000 yuan in liquid assets) surveyed in The Greater Bay area were interested in investing in products offered under the WMC program.
The association expects to be sold up to 300 mutual investment funds registered with 300 Hong Kong.
Initially, OCBC Wing Hang Bank awaits the program to see the net capital entries of the mainland to Hong Kong depending on the tracking register of the Mainland-Hong Kong Fund Recognition Plan, which It was launched jointly by the China Securities Regulatory Commission and the Hong Kong Futures and Futures Commission in July 2015.
Under the MRF scheme, the eligible continental funds and Hong Kong can be distributed in each one's market through a Vetting process. The SFC had authorized 50 continental domiciled funds, while the CSRC approved 29 funds registered in Hong Kong at the end of December 2020.
Potential Stand out unleashing
Funds domiciled by Hong Kong They tend to attract more cross-border capital flows from continental investors, such as accumulated net subscript
Categories:
Guangdong,
Shenzhen,
