Monetary authorities in China, Hong Kong and Macau on Friday announced the launch of the long-anticipated Wealth Management Connect, which adds wealth management products to cross-border flows opened up for stocks and funds under previous reforms.
"Individual investors in the three places will be able to make use of the convenient channel provided by the cross-boundary WMC to invest in more diversified wealth management products," said Eddie Yue, CEO of the Hong Kong Monetary Authority, in a news release.
In addition to offering more investment options for individual investors in the Greater Bay Area, which covers Guangzhou, Hong Kong, Macau, Shenzhen and seven other cities with a combined population of 72 million people and gross domestic product of $2.2 trillion, the new Wealth Management Connect program will create new opportunities for the banking and wealth management industry in the three places, Mr. Yue said.
Foreign money managers welcomed the announcement.
Rajeev Mittal, Hong Kong-based managing director, Asia-Pacific ex-Japan at Fidelity International, in a statement called the launch "another big step toward the opening of China's capital markets."
The program will facilitate capital flows in the region and support investors in diversifying their portfolios and grasping more opportunities for long-term growth," Mr. Mittal predicted.
David Liao, co-CEO of the Hongkong and Shanghai Banking Corp., in a statement said a survey by his bank showed strong interest among mainland investors in the Greater Bay Area to invest via Wealth Management Connect, with investors in Hong Kong likewise getting access to a broader variety of renminbi products.