A general view shows residential and commercial buildings next to Victoria Harbour, as seen from Hong Kong Island on May 11, 2021.

HONG KONG – Cross-boundary fund remittances under the Wealth Management Connect Scheme have reached over 670 million yuan ($102.26 million), including those from Macao and Hong Kong, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said Wednesday.

Replying to a question at the Legislative Council, Hui said over 24,000 individual investors have participated in WMC while over 7,000 remittances have been recorded as of Feb 28, 2022.

Financial Services and the Treasury Christopher Hui Ching-yu said over 24,000 individual investors participated in WMC and over 7,000 remittances have been recorded as of Feb 28, 2022

“(The WMC) is a milestone in the financial development of the GBA (Greater Bay Area) and an important measure that deepens and widens mutual access between the financial markets of the mainland and Hong Kong,” Hui said. 

Officially launched in 2021, the program allows for cross-boundary investments in the Greater Bay Area, which has a population of 86 million. It enables residents in Hong Kong, Macao, and nine cities in Guangdong province to carry out cross-boundary investments in wealth management products in the area. 

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Quoting the People's Bank of China, Hui said mainland investment products held by Hong Kong and Macao investors under WMC stood at around 204 million yuan, including 172 million yuan in wealth management products and 32 million yuan in funds. 

Offshore investment products held by mainland investors under WMC stood at around 118 million yuan, including 16 million yuan in funds and 102 million yuan in deposits. 

As of February 28, 2022, the aggregate quota usage under the Southbound Scheme and Northbound Scheme was over 120 million yuan and over 230 million yuan, respectively, Hui added.

“On top of promoting the organic growth of our local wealth management market, WMC also brings enormous business opportunities to the entire financial industry value chain in Hong Kong, encompassing product development, product distribution, asset management and related professional and support services, promoting the sustainable development of the local financial industry,” Hui said.

Currently, 24 eligible Hong Kong banks have begun to offer WMC services together with their respective mainland partner banks. 

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Hong Kong residents who have already opened renminbi accounts with investment functions in mainland banks can designate those accounts as investment accounts under the Northbound Scheme without the need to travel to the Mainland in person for opening new accounts, Hui said.

“In light of actual operational experience and market feedback, we are exploring other measures to enhance WMC in an incremental manner, such as allowing more participating financial institutions and improving sales arrangements,” he added.