Liu Kai, Chief Product Officer of Ping An Wealth Management: Individual cross-border investment ushers in the "3.0 era"

Cen Jinlu, a reporter of Southern Finance and Economics, reported in Shenzhen that "in 2021, the cross-border wealth management pass will officially land, and for more than 80 million residents in the Greater Bay Area, there are conditions to invest in bank wealth management products and public funds through the connection of bank accounts, which we call the 3.0 era of individual cross-border investment." At the "2021 Guangdong-Hong Kong-Macao Greater Bay Area Innovation Economy Summit Forum" held on November 5, Liu Kai, chief product officer of Ping An Wealth Management Co., Ltd., pointed out.

On September 10, the Detailed Rules for the Implementation of the Pilot Project of the "Cross-border Wealth Management Connect" Business in the Guangdong-Hong Kong-Macao Greater Bay Area were officially released, kicking off the prelude to the cross-border purchase of wealth management products sold by mainland banks by individual residents of the Guangdong-Hong Kong-Macao Greater Bay Area. On October 18, the financial regulatory authorities of Guangdong, Hong Kong and Macao announced the first batch of pilot lists that have been completed, and the "Cross-border Wealth Management Connect" has officially landed.

Liu Kai said that the "1.0 era" of cross-border capital investment can be traced back to QFII in 2002 and QDII in 2006. With cross-border investment entering the era of exchange interconnection, through the interconnection mechanism of the Hong Kong Stock Exchange, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, under the premise that there is no free convertibility of capital accounts, it creatively provides investors with the opportunity to invest in stocks and bonds across borders, and cross-border investment has entered the "2.0 era". In 2021, cross-border wealth management will be landed, and through the connection of bank accounts, residents in the Greater Bay Area can realize financial products such as wealth management products and public funds sold by cross-border investment banks, and cross-border investment has entered the "3.0 era".

Judging from the name of cross-border wealth management, the role of bank wealth management has been highlighted. Liu Kai believes that under the background of the new regulations on asset management, bank wealth management has rapidly become an important force that cannot be ignored in China's asset management and wealth management market. According to the data, as of mid-2021, the total asset management scale of banks will be about 26 trillion yuan.

Liu Kai believes that on the one hand, bank wealth management products are an important investment and wealth management category that can be publicly raised for the general public at a very low threshold under China's existing regulatory policies; on the other hand, the investment targets of bank wealth management products cover fixed income, equity, non-standard, etc., and have their own unique advantages in large-scale asset allocation and multi-asset multi-strategy implementation.

According to Liu Kai, at present, there are two main types of products provided by Ping An Wealth Management to Hong Kong and Macao residents for northbound investment: First, fixed income products, which allocate domestic high-quality corporate bonds, high-credit grade bonds and other investment products for cross-border wealth management customers, so as to facilitate Hong Kong and Macao customers to participate in domestic bond market investment and obtain returns on long-term economic growth. Second, fixed income + products, so that Hong Kong and Macao customers can have the opportunity to participate in the mainland equity market and share the growth dividends of listed companies. At present, Ping An Wealth Management hopes to use these products with relatively low volatility and absolute income target as the leading direction to let the first customers who participate in Northbound Investment get a better investment experience.

At present, in the business cooperation model of cross-border wealth management, Ping An Bank is the consignment bank of Ping An Wealth Management, Ping An Bank has established cooperative relations with OCBC Wing Hang Bank of Hong Kong and Tai Fung Bank of Macau, and eligible Hong Kong and Macao residents can purchase Ping An Wealth Management related products through OCBC Wing Hang Bank of Hong Kong and Tai Fung Bank of Macau.

Liu Kai believes that the prospect of cross-border wealth management is worth looking forward to, and also said that for the entire business, the Long March has just begun the first step. According to the data, from October 19 to 31, a total of 7,600 individual investors participated in the "cross-border wealth management connect" in the Greater Bay Area, and domestic banks handled 1,752 cross-border remittances of funds through the closed-loop remittance channel of funds, with an amount of 131 million yuan.

For more information, please download the 21 Finance APP