Wealth Management Connect: Hong Kong banks prepare to launch investment products under cross-border link
- HSBC said it will submit application as early as this week to HKMA to launch investment products under the cross-border Wealth Management Connect
- Around 20 banks are also likely to seek approvals for products ranging from bonds to mutual funds and deposit schemes
“We are also discussing with some financial institutions on exploring potential partnerships on the cross-border Wealth Management Connect,” Chan said.
More than 20 Hong Kong banks were expected apply for inclusion in the programme, Edmond Lau, HKMA’s deputy chief executive, said during the launch on Friday.
“There will be interest from banks and investors” given the opportunities in the Bay area, said Robert Lee, chairman of Hong Kong Securities Association, a body representing brokers in the city. “In a low interest -rate environment, investors may also be attracted to higher yielding assets denominated in yuan,”
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A number of other banks also said they were ready to launch wealth products. Bank of China (Hong Kong) and Citigroup said they will provide more than 100 wealth management products, including bonds, mutual funds, deposit schemes and services in different currencies. Hang Seng Bank said it was ready to provide more than 140 products.
Banks have been strengthening their staff for months in anticipation of the scheme’s launch.
Citigroup, which wants to be a part of the first batch of the banks included in the initiative, plans to increase its manpower. The US bank said it will hire another 1,000 professionals in Hong Kong by the end of 2025 for the wealth connect.
Additional reporting by Enoch Yiu