The launch of cross-boundary Wealth Management Connect (“WMC”) pilot scheme in the Greater Bay Area (“GBA”)

In its latest move to further open up the country’s financial market and turn the Greater Bay Area (“GBA”) into an economic powerhouse, the cross-boundary Wealth Management Connect (“WMC”) pilot scheme was officially launched and it is China’s first cross-border wealth management scheme focused on the GBA. Comprising 9 Mainland cities in Guangdong province and 2 special administrative regions of Hong Kong and Macau, the GBA is home to 20% of China’s ultra-high-net-worth and high net-worth households according to a market survey.

On 10 September 2021, the Hong Kong Monetary Authority (“HKMA”) issued the implementation details for the WMC scheme, providing a supervisory guidance for the banking sector in Hong Kong. The WMC is a two-way scheme, allowing eligible Mainland, Hong Kong and Macao residents in the GBA to invest in eligible wealth management products distributed by banks in each other’s market, and is expected to provide investors with a diversified range of investment opportunities.

This publication provides an overview of the regulatory requirements under the WMC pilot scheme, and Mazars’s insights on the key features that Hong Kong banks should consider. Mazars in Hong Kong offers a wide range of financial advisory services to assist you in achieving compliance with the rules and regulations relevant to you.