Mainland Chinese, Hong Kong and Macau authorities have agreed on the principles of supervisory cooperation under the cross-boundary Wealth Management Connect in the Greater Bay Area (GBA).
The Wealth Management Connect is a two-way scheme allowing residents of Hong Kong and Macau to invest in wealth management products distributed by mainland banks in the GBA, and residents of mainland cities in the GBA to invest in wealth management products distributed by banks in Hong Kong and Macau.
The aim is to reduce cross-boundary restrictions for nearly 70m residents in GBA cities to access wealth products.
The Hong Kong Monetary Authority (HKMA), the People’s Bank of China (PBOC), China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange, Securities and Futures Commission of Hong Kong and Monetary Authority of Macau, have signed the “Memorandum of Understanding on the Launch of the Cross-Boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area”.
By signing the MoU, authorities in the three places aim to establish sound supervisory cooperation arrangements and liaison mechanism. The memorandum covers topics such as regulatory information exchange, law enforcement cooperation, investor protection, liaison and consultation mechanism.
The goal is to maintain orderly and fair trading, and improve cooperation to prevent supervisory discord, regulatory arbitrage and other related cross-boundary illicit or non-compliance activities.
The Securities and Futures Commission and the HKMA said they will launch the Wealth Management Connect as soon as possible.
On 29 June 2020, the PBoC, the HKMA and the Monetary Authority of Macao issued a joint statement to announce the launch of the Wealth Management Connect to facilitate cross-boundary personal financial services and sale of investment products to individual residents within the GBA.