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Hong Kong wealth managers can’t wait for new Connect programme, with Singapore ready to pounce on city’s troubles
- Cross-border Wealth Management Connect seen boosting Hong Kong fund managers like stock and bond programmes
- Recent updates from HKMA suggests programme launch is imminent, sources say
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China’s plan to turn the Greater Bay Area into a hub for wealth management products will help turbocharge Hong Kong’s fund industry, giving it an invaluable edge in warding off challenges from Singapore, market players said.
While Singapore is firmly entrenched in Southeast Asia, the former British colony could stake in a leading role in the broader Asian region with the opening up of the Greater Bay Area in the coming years, according to the Hong Kong Investment Funds Association (HKIFA).
“The Wealth Management Connect will expand the customer size of Hong Kong fund houses by 10 times,” Chairman Bruno Lee said in an interview with the Post. “This will be an important driving force to help Hong Kong to win over Singapore as a leading hub in Asia.”
The programme cannot come soon enough for the city whose future has been clouded by back-to-back turmoil, first from the anti-government protests last year and now the controversy over the national security law. Singapore, a perennial rival and a pillar of stability, is seen as benefiting from capital outflows from Hong Kong.
The new Connect programme will be the fourth China-Hong Kong cross-border financial plan, after the introduction of several stock and bond connections between 2014 and 2017. Mainland investors now contribute 5 to 10 per cent of daily stock transactions on the Hong Kong stock exchange, according to market data.
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