Regulators sign cross-boundary agreement
China’s central bank, together with other financial authorities, has signed a memorandum of understanding with its Hong Kong and Macau counterparts on establishing a cross-boundary Wealth Management Connect pilot scheme in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA), it announced on Friday.
All parties agreed to supervise the business within their respective responsibilities and cooperate with each other. The memorandum covers topics such as regulatory information exchange, law enforcement cooperation, investor protection, liaison and consultation mechanism.
The signing of the memorandum will be of great significance to the implementation of the national strategic plan for developing the Greater Bay Area and the deepening of the financial cooperation between mainland, Hong Kong and Macau, the statement said.
To promote cross-border investment in wealth management products by individual investors in the GBA area, the People’s Bank of China, the Hong Kong Monetary Authority, and the Monetary Authority of Macau made an announcement last June to launch the pilot scheme.
Standard Chartered Bank China said it is glad to see the MOU officially signed, another landmark achievement of China's financial industry innovation and opening.
The move will vigorously promote interconnection and financial cooperation in the Greater Bay Area, boost internationalization of yuan, and strengthen the region’s role as an important bridge and link between the internal and external circulation of China's economy, the bank said.
“The launch of Wealth Management Connect will open new opportunities for members of the fast-growing mass affluent and high-net-worth investor pool, allowing them to diversify their investments,” said Peter Wong, deputy chairman and chief executive of The Hongkong and Shanghai Banking Co Ltd.
The GBA economy was worth US$1.7 trillion in 2019 and it’s expected to reach US$4.6 trillion by 2030. For financial services, HSBC expects the region will become the world’s largest banking revenue pool, reaching US$185 billion by 2025.