Participation in Wealth Management Connect undesirable, regulators consider scheme expansion – SFC chairman

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The Cross-Border Wealth Management Connect, launched for more than a year, has been running largely steadily, although the participation level of the scheme has been undesirable amid pandemic, limited investment product scope and requirement on Northbound investors who have to open accounts in person in mainland China, said Tim Liu, chairman of the Securities and Futures Commission. 

In order to further optimize the scheme, the securities regulators of mainland China and Hong Kong are conducting consultations on appropriate expansion of the scope of eligible investment products and allowing qualified securities companies to participate in the Connect as sales agencies under controllable risks, he said.

he Cross-Border Wealth Management Connect is a program that allows investors from mainland China and Hong Kong to invest in each other’s wealth management products. The scheme was launched over a year ago to promote the development of the Greater Bay Area and to increase cross-border investment between mainland China and Hong Kong.