The list of 46 pilot banks is announced!
The cross-border wealth management business was launched on the 19th
Text | Li Wen Yu Junyi
On the afternoon of October 18, the financial regulatory authorities of Guangdong, Hong Kong and Macao announced the list of the first batch of pilot banks for the "Cross-border Wealth Management Connect" business that have completed the filing. At the same time, a number of banking institutions on the list said that they would officially open relevant businesses from the 19th.
This means that after more than a year of preparation, investors have finally officially opened the long-awaited "cross-border wealth management connect" business in the Guangdong-Hong Kong-Macao Greater Bay Area.
The list of 46 pilot banks was announced
According to the information on the official website of the central bank, the "Securities Daily" reporter found that as of October 18, 2021, 20 mainland banks have completed the reporting of the pilot business of the "Cross-border Wealth Management Connect" in the Guangdong-Hong Kong-Macao Greater Bay Area, including 7 large joint-stock banks and 7 foreign banks in addition to 6 state-owned banks.
At the same time, according to the official list released by the Hong Kong Monetary Authority, there are 19 banks in Hong Kong, China that can carry out cross-border wealth management business; the Monetary Authority of Macau has also published a list of 7 local banks that have completed the filing procedures for cross-border wealth management business.
According to the data of the central bank, according to preliminary statistics, one hour after the opening of the business on the morning of the 19th, the nine cities in the Greater Bay Area, Hong Kong and Macao have already had business embodiment. Mainland correspondent banks have successfully deposited 41 "Northbound Connect" investment funds for Individual Investors in Hong Kong and Macao through the RMB Cross-Border Payment System (CIPS), involving an amount of RMB2.496 million. Through the agency witness service, the Mainland Cooperative Bank assisted the Hong Kong and Macao Sales Bank to open 115 "Southbound Connect" investment accounts for individual investors in the Guangdong-Hong Kong-Macao Greater Bay Area, and successfully remitted 8 investment funds involving an amount of 398,000 yuan.
So, what are the products of "Cross-border Wealth Management Connect"? It is understood that at present, the banks in the Greater Bay Area not only provide diversified products but also have low risks in the early stage of business opening. Taking China Merchants Bank as an example, CMB Wealth Management said that considering factors such as low volatility, stability and historical performance, CMB Wealth Management and its parent bank worked together to select the best of the existing products, and finally selected 426 public wealth management. These products include 25 sub-series. These products include fixed income products, dividend-based products, as well as "global momentum" that can win the rotational income of various overseas assets; the product risk level is mainly R2 and R3; and the product term is also very flexible, including daily opening, monthly opening, half a year, one year, etc.
For another example, Bank of China Shenzhen Branch said that in the early stage of business start-up, it can provide low-to-medium risk wealth management products for Northbound Connect, as well as mainland public fund products with R1 to R3 risk levels. HSBC said it plans to offer more than 100 medium- and low-risk wealth management products.
Liu Yunpu, vice chairman and CEO of Hong Kong Baoxin Financial Group, said in an interview with the Securities Daily reporter, "The yield of mainland wealth management products is still more attractive to hong Kong and Macao residents, because the yield of low-risk products in the mainland is generally higher than that in Hong Kong." At the same time, the Cross-Border Wealth Management Connect has also set an ultra-low threshold for Hong Kong residents. ”
Liu Yunpu further said, "The 'Cross-border Wealth Management Connect' business also meets the requirements of mainland residents for the diversification of investment products. It can be said that the cross-border wealth management business is an important measure to further open up the financial market, and through this business, institutions and investors in the Greater Bay Area can test the waters and better understand the characteristics and laws of the overseas and domestic investment market. ”
The pilot may be further expanded in the future
At present, the pilot scope of cross-border wealth management business is limited to the participation of residents of 9 cities in the Greater Bay Area, while the upper limit of cross-border capital net outflow of "Northbound Connect" and "Southbound Connect" does not exceed 150 billion yuan. As for whether the scope of future business pilots will be further expanded, many people in the industry are in a positive position.
Liu Yunpu believes that the "Cross-border Wealth Management Connect" was first piloted in the Guangdong-Hong Kong-Macao Greater Bay Area because there are more high-net-worth people in the region and similar cultural backgrounds. From the perspective of risk control and accumulation of pilot experience, testing the waters in the Guangdong-Hong Kong-Macao Greater Bay Area will help to accumulate early experience, and after the pilot matures, the scope of business pilots may be further relaxed and gradually promoted to all parts of the country. It is believed that with the in-depth advancement of the pilot, more qualified institutions will be shortlisted for the pilot list, and the business will also have a far-reaching impact on the development of the domestic wealth management market and the opening up of finance to the outside world.
It is worth noting that existing banking institutions are actively prepared for the further expansion of the business of the future pilot. For example, Lin Yuandong, CHIEF Executive Officer of Standard Chartered Greater Bay Area, said that the "Cross-border Wealth Management Connect" is a major breakthrough in the financial development of the Greater Bay Area and a key step in the mainland's opening up of cross-border investment by individuals. The Group expects that the pilot business will gradually expand in the future, increasing the investment quota and the types of wealth management products, so as to make the allocation of personal assets in the Greater Bay Area more diversified.
So what opportunities can cross-border wealth management business bring to institutions in the Greater Bay Area? Wang Yifeng, chief analyst of the financial industry of Everbright Securities Research Institute, told the Securities Daily reporter that with the help of "cross-border wealth management", mainland pilot banks can provide services such as "Southbound Connect" related remittances and Hong Kong and Macao bank connections for customers who meet the standards, assisting customers to expand the scope of asset allocation, thickening intermediate business income, and enhancing customer stickiness. At the same time, to enhance the ability to obtain customers, if the bank that previously provided services to customers does not have the relevant qualifications of "cross-border wealth management", customers may choose to add a new bank with exhibition qualifications to open an account.
"The business opportunities of mainland consignment banks are mainly reflected in the docking of Hong Kong and Macao cooperative banks, with the help of the 'Northbound Pass' to reach the customer base in Hong Kong and Macao, improve customer coverage and channel sales capabilities, and expand wealth management business." Wang Yifeng said.
In addition, Wang Yifeng also reminded that in the actual business development process, pilot banks need to pay attention to sales compliance, that is, mainland consignment banks can provide consultation and interpretation services for relevant products through telephone, online and other channels at the request of customers, but must not take the initiative to invite, solicit customers and provide investment advice or go to Hong Kong and Macao to carry out substantive sales of "cross-border wealth management".
The "Cross-border Wealth Management Connect" business in the Guangdong-Hong Kong-Macao Greater Bay Area was officially launched
Individual investment needs will be further released
Text | Zheng Xinyue
The highly anticipated "Cross-border Wealth Management Connect" business in the Guangdong-Hong Kong-Macao Greater Bay Area was officially launched.
On October 18, the Shenzhen Central Branch of the People's Bank of China, the Guangzhou Branch of the People's Bank of China, the Hong Kong Monetary Authority and the Monetary Authority of Macao respectively released the list of the first batch of pilot banks in the Guangdong-Hong Kong-Macao Greater Bay Area "Cross-border Wealth Management Connect". Among them, Shenzhen, Guangzhou, Macao and Hong Kong have 20, 20, 7 and 19 banks respectively shortlisted.
According to the Hong Kong Monetary Authority, the relevant banks and their mainland partner banks can start providing cross-border wealth management services as early as today (19 October) after being included in the pilot scope of cross-border wealth management business by the relevant mainland regulators.
On October 19, Bank of Communications, Shanghai Pudong Development Bank and HSBC all said in interviews with Securities Daily reporters that the bank became one of the first banks to be allowed to open "cross-border wealth management" business, and officially launched the "cross-border wealth management" service to residents of the Greater Bay Area on the same day.
According to the Bank of Communications, the branches of the Bank of Communications in Guangdong, Shenzhen, Hong Kong and Macao Bay Area have worked together to officially launch the "Cross-border Wealth Management Connect" service. In terms of "Northbound Connect" products, BANK OFCOM has selected more than 50 investment products with good historical performance and long-term stable performance among the massive products in the whole market, providing a preferred wealth management experience for the cross-border asset allocation of residents in the Greater Bay Area. In terms of "Southbound Connect" products, the Bank of Communications provides more than 100 investment products covering deposits, bonds, public funds and other categories, covering RMB, Hong Kong dollar, US dollar, euro, Australian dollar and other currencies.
SPDB said that in mid-to-late September, the bank had made preparations for the "Cross-border Wealth Management Connect", and was qualified to handle the "Cross-border Wealth Management Connect" business in the Guangdong-Hong Kong-Macao Greater Bay Area and the Hong Kong Special Administrative Region, and allocated professional wealth management managers and cross-border service teams. At present, SPDB Guangzhou Branch and Shenzhen Branch have landed the first southbound and northbound business, and the Hong Kong branch has completed the first northbound account opening and fund deposit. In terms of product selection, taking into account the market environment and investor needs, the current Northbound Pass and Southbound Connect are mainly medium- and low-risk products to ensure the smooth start of the "Cross-border Wealth Management Connect".
"For Hong Kong and Macao investors, the biggest attraction of mainland assets is the investment dividend brought about by the rapid growth of China's economy. In the future, we will accelerate the development of exclusive financial products in line with the Guangdong-Hong Kong-Macao Greater Bay Area, and continuously enrich the types of innovative products from the perspective of customers to meet the needs of Hong Kong and Macao investors for personalized and comprehensive financial services. The relevant person in charge of Spousal Development Bank said.
HSBC said that HSBC has successfully opened accounts for "Southbound Connect" and "Northbound Connect" customers to assist them in investing through "Cross-Border Wealth Management Connect" in the first place. On the first day of the service launch, Chen Qingyao, General Manager of HSBC's Greater Bay Area Business Department, also successfully opened an account as the first batch of customers at the HSBC Cross-Border Wealth Management Connect Centre in Guangzhou.
It is reported that after successfully opening a special account in the HSBC "Cross-border Wealth Management Connect" center, customers in the Greater Bay Area can invest in more than 100 selected wealth management products through the digital mobile service platform at any time. Among them, "Southbound Connect" customers can invest in multi-currency money market funds and multi-asset funds managed by global fund managers, bonds issued by international corporations and government agencies and deposit products in 11 currencies, while Northbound customers can choose multiple hybrid funds and bond funds managed by high-performing fund managers.
Li Feng, Vice President and Chief Customer Officer of HSBC China, said in an interview with the Securities Daily reporter, "The financial markets of Guangdong and Hong Kong are extremely complementary, and for mainland investors, the biggest attraction of 'Cross-border Wealth Management Connect' is that Hong Kong's wealth management products can help them allocate global assets; for Hong Kong and Macao residents, the resilient growth of the mainland economy and the relative stability of the RMB currency have made the attractiveness of RMB assets continue to increase." We expect that with the launch of cross-border wealth management, the investment needs of individuals in the region will be further released. ”
A private equity person told reporters that the official launch of the "cross-border wealth management pass" business pilot is a part of China's financial opening up, which is not only conducive to the facilitation of cross-border investment of individuals, but also helps to promote China's expansion of two-way financial opening-up, promote the social and economic development of the mainland and Hong Kong and Macao, and also brings major opportunities for financial institutions to improve services and expand their business.
The 4th China Dairy Capital Forum
Questionnaires
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