Greater Bay Area: HSBC, Standard Chartered increase Wealth Management Connect products as they promote cross-border investments

The new rules, which took effect on February 26, raised the personal investment limit from 1 million yuan (US$138,923) to 3 million yuan and added renminbi-denominated deposit products from mainland banks, a move that It is seen as creating more business opportunities for

HSBC announced on Monday that it has increased the number of products it offers for both northbound and southbound investments through the scheme from 270 to more than 400.

The expanded product offering includes more than 100 mutual funds that invest in Asian and global markets, making it easy for southbound investors (mainland Chinese investors focused on Hong Kong’s capital markets) to expand their portfolios. They are able to diversify and leverage international assets.

According to a press release from the bank, the financial institution’s enhancements, which take effect from Monday, will allow all existing retail investors to invest up to 3 million yuan through the scheme, up from 1 million yuan previously.

“The latest enhancements are [Wealth Management Connect mechanism] This further increases the attractiveness of the system, boosts investment and facilitates deeper integration of the GBA’s financial sector,” said Daniel Chan, Head of HSBC Greater Bay Area.

Roughly two-thirds of more than 2,000 residents in 11 cities in the Gulf region are interested in moving beyond borders, including relaxed entry standards, more diverse investment options, and higher personal investment amounts, according to a recent survey conducted by the financial institution. It turns out that he believes in improving the system beyond that. Setting a quota will encourage you to start investing or increase your existing investment through this scheme.

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Mr Chan said wealth planning and advisory services were key elements to encourage retailer participation in the scheme.

Hang Seng Bank, a subsidiary of HSBC, also announced on the same day that it will expand its offering of wealth management products related to cross-border investments, offering approximately 320 southbound and northbound investment options. This is approximately double the number available at the start of the scheme in 2021, the financier said in a statement.

“The enhancement of the Wealth Management Connect program opens new avenues for growth in the wealth management sector,” said Lanny Li, Head of Wealth and Personal Banking at Hang Seng Bank.

Standard Chartered also joined the fray on Monday, expanding the products it offers through the scheme, giving southbound investors access to nearly 550 products including medium-to-high-risk Chinese equity funds and low-to-medium-risk bonds. They announced that they will be able to choose from. .

Investors heading north, i.e. Hong Kong-based investors with an eye on the mainland’s capital markets, will find more RMB deposit products as well as more than 40 products covering sectors such as consumption, energy, infrastructure and manufacturing. They will have access to mutual fund products, the bank said.

The Gulf region has a population of over 86 million people and a gross domestic product of over 13 trillion yuan (US$1.8 trillion) as of 2022, accounting for more than 10% of China’s economic output. This is the core of the country’s economic blueprint, with the Chinese government planning to transform the region into a high-tech economic powerhouse by 2035.

According to official data, by the end of 2023, 67 banks and 69,000 investors in the Gulf region had joined the Wealth Management Connect scheme, and cross-border remittances reached 12.8 billion yuan.