Caixin
Nov 23, 2021 08:09 PM
FINANCE

Greater Bay Area Wealth Connect Trial Sees Over $31 Million in Transactions

What’s new: China’s new cross-border wealth management connect (WMC) trial program in the Greater Bay Area (GBA) has reported transactions worth more than 200 million yuan ($31.3 million) since it was launched on Oct. 19.

The WMC allows Chinese mainland residents of the nine Guangdong cities in the GBA to invest in certain wealth management products sold by banks in Hong Kong and Macao via the “southbound link.” Likewise, residents from the two special administrative regions are able to invest in eligible products distributed by mainland banks in the area via the “northbound link.”

As of Monday, the net investment into the mainland market via the northbound link was 111.1 million yuan, according to a statement released by the Guangzhou branch of the People’s Bank of China (PBOC). The net investment into Hong Kong and Macao via the southbound link was 90.3 million yuan, the statement showed.

As of Nov. 12, around 11,500 retail investors had made investments via the WMC, with 65% from the two special administrative regions and 35% from the mainland, according to Caixin’s calculations based on data from the PBOC’s Guangzhou branch.

The background: The WMC program is part of Beijing’s efforts to further open up the mainland financial market. Government officials and bankers hope the WMC program will create new business opportunities for financial industries in the region, broadening investment access for local residents, and boosting the cross-boundary use of the yuan.

Related: Five Things to Know About the New Cross-Border Wealth Connect Program

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

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