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September 13, 2021

Hong Kong lenders to unveil investment products under wealth management connect

By Verdict Staff

Hong Kong Monetary Authority (HKMA) has launched a cross-border wealth link that would enable financial institutions in the country to tap the Greater Bay area.

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The move is part of a $46.5bn cross-border Wealth Management Connect Scheme that looks to establish a wealth channel between mainland China and Hong Kong and Macau.

HKMA is currently accepting applications from financial institutions in Hong Kong to launch products ranging from bonds, mutual funds, deposit schemes, and services.

Nearly 20 Hong Kong lenders are expected to approach the regulator for the approval for their investment products, according to HKMA deputy chief executive Edmond Lau.

The first products are expected to be approved by HKMA in a month, allowing the lenders to roll out the offerings in October.

About 300 Hong Kong-based investment funds are said to be qualified to provide their financial products to nine cities in Guangdong province and Macau, where investors are entitled to invest up to CNY 1m.

The other regulators are expected to begin accepting application from next month.

HSBC, Standard Chartered, DBS, and Citi are said to be amongst the banks preparing to submit an application to HKMA.

Bank of China (Hong Kong) and Citigroup said that they will offer over 100 wealth management products in different currencies.

Citigroup is also beefing up the workforce in anticipation of the scheme. The US lender is planning to recruit an additional 1,000 employees in Hong Kong by the end of 2025 for the wealth connect.

Citi Hong Kong chief executive and consumer business manager Lawrence Lam was quoted as saying: “We are in place to deliver the best value for our clients in the region, including to offer Greater Bay Area clients a broader range of investment opportunities.”

HSBC is also planning to add some 300 to 400 new employees to its Hong Kong team.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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