appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Enoch Yiu

Improvements to the Wealth Management Connect scheme in February have proven to be a game-changer, with investment via the cross-border trading channel jumping by four times between January and April, according to the government data and industry players.
The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, while the number of investors using it rose 60 per cent to 110,000, according to government data.
ICBC Asia, a key user of the mechanism, has seen a fourfold increase in the number of customers opening accounts under the initiative and a tenfold leap in assets under management since measures to enhance it were introduced by Beijing, said Jimmy Jim Wai-kee, managing executive officer and head of the lender’s global market department.
“We were very happy to see the enhancements of the Wealth Management Connect scheme,” Jim said in an interview on the sidelines of the South China Morning Post’s China Conference on Thursday.
“People are really making use of the cross-border scheme to capture the opportunity offshore, namely in Hong Kong and in international markets. The demand is huge.”


Launched in 2021, the mechanism allows residents of Hong Kong, Macau and nine cities in Guangdong province to invest directly in designated wealth management products across borders.
However, sales were initially poor because of the pandemic, while tough restrictions and a limited choice of products also deterred investors.
New rules took effect on February 26 raising the individual investment quota from 1 million yuan (US$140,000) to 3 million yuan and adding yuan-denominated deposit products offered by mainland banks – moves viewed by lenders as creating more business opportunities.
Dubbed Wealth Management Connect 2.0, the new improved mechanism boasted a broader selection of sales products, including China equity funds. Jim said this was important because it enabled the bank to add more fund choices for investors.
He hopes to see the scheme further improved to strengthen the role of Hong Kong in capturing the growing demand from mainland investors.
“Given China has the highest amount of savings in the world, there is a lot of money. Hong Kong plays a very important role in connecting mainland investors with the world, as well as international investors with the onshore market,” he said.
Jim said the recent stock market rally in China and Hong Kong has also helped boost the trading link.
Hong Kong’s benchmark Hang Seng Index rose 7 per cent in the second quarter, a rally triggered by the announcement by the China Securities Regulatory Commission in April that it would facilitate Hong Kong listings by leading mainland companies and expand the Stock Connect cross-border investment schemes.
Wealth management is a key focus of development for ICBC Asia, which has 47 branches in Hong Kong including 25 designated as “elite centres” servicing rich clients.
ICBC Asia is the Hong Kong unit of the mainland’s largest bank, the Industrial and Commercial Bank of China (ICBC), employing about 3,000 staff. Jim said it is working closely with its parent to expand in the Greater Bay Area and overseas markets.
“We look at every possible way to synergise to serve our customers, regardless of where they are. As part of the ICBC group, we can serve clients through the group’s global network including 20 countries in Africa,” he said.
“We help our customers to understand where the opportunities are and we can provide the right products for them to start their businesses anywhere in the world. Whether they want to go into China or if they want to expand out of China, we can serve them through the ICBC network.”


What can Asia, Global South learn from India’s new digital payment fee?

China’s humanoid robot IPO slowdown no threat to firms with ‘genuine strength’: Deloitte

Who has the upper hand in financial markets, the US or China?

ChinaAMC launches 3 Hong Kong ETFs as demand for targeted strategies grows

Banking & finance

Wealth Management Connect revamp sent cross-border investment skyrocketing, says ICBC

ICBC Asia has seen a fourfold increase in the number of customers opening accounts under the Wealth Management Connect initiative. Photo: Bloomberg

Upbeat and hopeful: China Conference panel optimistic about Hong Kong’s future prospects

(L to R) Tammy Tam, Editor-In-Chief of the South China Morning Post; Dr. Henry Wang Huiyao, Founder and President of the Center for China and Globalization; Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited, at the 2024 China Conference held at the Hong Kong Ocean Park Marriott Hotel on 4 July 2024. Photo: May Tse

Clara Chan, Chief Executive Officer of the Hong Kong Investment Corporation Limited, spoke at the South China Morning Post’s 2024 China Conference held at the Hong Kong Ocean Park Marriott Hotel on 4 July 2024. Photo: May Tse.

Phil Witherington, the regional CEO of Manulife, delivers the opening remarks at the China Conference on Thursday. Photo: May Tse

ICBC Asia to combat fraud by doubling down on AI amid rise in scams, anti-financial crimes chief says

Tony Mak, head of the financial crime compliance department at ICBC Asia. Photo: Jonathan Wong

ICBC chairman Chen Siqing resigns as Chinese banking industry undergoes leadership reshuffle

The world’s third-largest lender by market capitalisation has announced a key change at the top, the latest in a slew of leadership reshuffles in the country’s banking sector this year. Photo: Bloomberg

The statement said 63-year-old Chen Siqing, pictured in 2020, was resigning because of his age. Photo: China News Service via Getty Images


Wealth Management Connect: HSBC, Standard Chartered among top banks eyeing Greater Bay Area sales boost with roll-out of enhancements to cross-border investment scheme

Hong Kong’s three note-issuing banks – HSBC, Standard Chartered and Bank of China (Hong Kong) – have all strongly welcomed the enhancements. Photo: Handout


China’s fledgling Wealth Connect plan is stunted as the devil in 3 disparate systems stymies Greater Bay Area strategy for banks, brokers, insurers

illustration by Lau Ka-kuen

Aerial view of the evening traffic on Hong Kong–Zhuhai–Macau Bridge, Chek Lap Kok. Photo: Winson Wong

Evan G. Greenberg, President and Chief Executive Officer of Chubb Limited, photographed at Chubb office in Quarry Bay. Photo: Xiaomei Chen

Nelson Chow, chairman of Hong Kong Investment Funds Association, who is also managing director of Hong Kong unit of AllianceBernstein. Photo: Handout

Investors who lost money in Lehman Brothers’ minibonds took to the streets of Hong Kong on July 1, 2009 to demand for their refund. Photo: Ricky Chung.

Private Wealth Management Association, Managing Director Peter Stein. PHOTO: SCMP

Stephen Chan, Deputy Chief Executive, Bank of China (Hong Kong), attends the press conference over The First “Bank of China (Hong Kong) Hong Kong-Zhuhai-Macau Bridge (Hong Kong Section) Half Marathon” at Bank of China Tower, in Central. 26JUL23 SCMP / Edmond So

Business

Banking & Finance

China Business

Markets

Money

Mutual Funds

Markets & Investing

Money News

Wealth

Economy

China Economy

News

China

Money & Wealth

The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, according to government data


Improvements to the Wealth Management Connect scheme in February have proven to be a game-changer, with investment via the cross-border trading channel quadrupling between January and April, according to government data and ICBC.


.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, according to government data

The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, according to government data