Wealth Management Connect to help Hongkongers – from tycoon Allan Zeman to housewives – tap China growth story

1 million yuan cap is too small, but appropriate for initial stages, says Zeman

Looking forward to opening an account once the scheme starts operations, says housewife from Hong Kong living in Shenzhen

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I will need to study the scheme before I invest in mainland Chinese fund products through the Wealth Management Connect, says Allan Zeman. Photo: Winson Wong

Published: 8:30am, 11 Sep 2021

The Wealth Management Connect scheme will provide a whole swathe of Hong Kong investors with a new channel to tap mainland China’s growth story.

Each individual investors can invest up to 1 million yuan (US$155,259) in mainland Chinese mutual fund products through banks in the Greater Bay Area development zone. The initial total quota has been set at 300 billion yuan equally split between fund flows in both directions.

“I have invested in many different projects in different parts of China, as I strongly believe in the long-term growth of the country. As such, I welcome any new investment scheme, such as the Wealth Management Connect scheme, that will allow investors to participate and invest in the growth story of China,” Allan Zeman, the founder and chairman of Lan Kwai Fong Holdings and its namesake nightlife district in Hong Kong’s Central district, told the Post on Friday.

The 72-year-old tycoon who first came to Hong Kong from Canada in 1970, added that he believed the new connect scheme would be popular.

Announced on Friday, the scheme also allows mainland Chinese investors to invest up to 1 million yuan in the about 300 fund products available through banks in Hong Kong. Unlike the cross-border investment links that came before it, the Wealth Management Connect is limited geographically to the Greater Bay Area. It enables residents in Hong Kong, Macau and nine Guangdong province cities to carry out cross-border investments in diversified wealth management products distributed by banks in the development zone.

A survey of more than 1,600 residents of the bay area conducted by HSBC in the fourth quarter found that 82 per cent of respondents were interested in the Hong Kong investment products that would become available through the new connect scheme.