(Photo: Nanfang Daily)
Pilot banks have launched products related to the Cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area (Cross-boundary WMC), after the system was enhanced this year.
Standard Chartered (Hong Kong) said that, from February 26 to March 28, some customers under the program who exchange new funds worth HK$100,000 ($12,787) or above from the yuan to the US dollar and open US dollar deposits with the designated funds can enjoy a deposit interest rate of 10 percent per annum for one month deposits, and 6 percent per annum for three-month deposits.
Industrial and Commercial Bank of China (Asia) has launched deposit savings for the so-called southbound customers. From February 26 to March 31, eligible customers can enjoy preferential interest rates per annum for purchasing yuan, Hong Kong dollar or US dollar deposits of one-month or three-month terms via the southbound link system.
And, the interest rate for the deposit of HK$1,000 and more is 9 percent for one-month savings, and 6 percent for three-month savings.
China Construction Bank (Asia) said that under the southbound link, the preferential annualized interest rate for yuan deposits is 6 percent for both one-month and three-month savings. The preferential interest rate for US dollar fixed-term deposits is as high as 10 percent per annum.
The enhancement of the Cross-boundary WMC will create more opportunities for local financial sector, and facilitate cross-boundary investment in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), while promoting the cross-boundary circulation and use of the yuan.
"The upgrading of the Cross-boundary WMC has provided more convenience for local residents to carry out cross-boundary wealth management. By investing in some US dollar-denominated wealth management products, customers can achieve a higher return," Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times on Sunday.
Yang said that the development of financial connectivity among Guangdong, Hong Kong and Macao is promising, as residents in the GBA have stronger demand for cross-border wealth management.
The Cross-boundary WMC is one of the key initiatives under the mutual market access programs among the capital markets of Hong Kong, Macao and the Chinese mainland. The program was launched in September 2021, allowing eligible residents in the mainland, Hong Kong and Macao in the GBA to invest in wealth management products enabled by the inter-connected banking system. The program has southbound and northbound components.
In January 2024, enhancement measures for the Cross-boundary WMC were announced to refine the eligibility criteria of mainland investors, expand the scope of participating institutions to include eligible securities firms, expand the scope of eligible products, increase the individual investor quota and further enhance the promotion and sales arrangements.
