Representatives of the central government and the Hong Kong and Macao financial regulators signed a memorandum of understanding on supervisory cooperation under the planned cross-boundary Wealth Management Connect program, the People’s Bank of China announced on Friday.
The move marks another step forward for the program, which will allow residents of the Guangdong-Hong Kong-Macao Greater Bay Area to purchase eligible cross-boundary investment products from banks.
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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 will take effect when the program is launched. The date has not yet been announced.
The HKMA said in a news release that the signing of the memorandum will lay a good foundation for the smooth operation of the program and the protection of investors’ interest
The memorandum was signed by the Hong Kong Monetary Authority, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the Securities and Futures Commission of Hong Kong, and the Monetary Authority of Macao.
The memorandum covers basic principles of the program, the exchange of supervisory information, enforcement cooperation, investor protection, and a liaison and consultation mechanism.
It is believed that the memorandum will be significant in the implementation of the Bay Area development, and the strengthening of supervisory cooperation and financial cooperation among Guangdong, Hong Kong and Macao, the PBOC said.
The HKMA said in a news release that the signing of the memorandum will lay a good foundation for the smooth operation of the program and the protection of investors’ interest.
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The HKMA will continue to work with authorities to step up preparations for the cross-boundary Wealth Management Connect and keep the industry engaged, with a view to launching the program soon, it said.
As part of the growing financial cooperation in the Bay Area, the Wealth Management Connect was announced in November 2019. A pilot program announced on June 29 will allow residents in the region to carry out cross-boundary investment in wealth management products distributed by banks in the Bay Area by opening designated investment accounts in these banks. The program has southbound and northbound components, depending on the investors’ residency.