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Links such as Wealth Management Connect could keep Greater Bay Area among world’s top 10 economies, experts say

  • The Greater Bay Area would have ranked ninth globally last year if it was a stand-alone economy, says Deloitte partner
  • Zone to take on ‘increasingly important role’ in innovation, technology and green finance globally

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Shenzhen, as seen across Deep Bay from Hong Kong. Both cities are part of the Greater Bay Area. The zone can stay in the top 10 economies globally in the medium and longer term because of the many cross-border financial schemes linking Hong Kong and Macau with mainland China, says a partner at Deloitte. Photo: AFP
Beijing’s Greater Bay Area development zone, which would have broken into the world’s top 10 economies last year were it a stand-alone entity, is expected to continue to grow thanks to cross-border financial connect schemes, industry players said.
Last week, Beijing launched the long-awaited Wealth Management Connect scheme that will allow Hong Kong and Macau residents to invest in onshore Chinese fund products through banks in the development zone, while residents in the bay area’s nine mainland Chinese cities will be able to invest in Hong Kong fund products through local lenders.
China also plans to expand the Bond Connect scheme to allow mainland Chinese investors to buy Hong Kong bond products.
“Since China has better controlled the coronavirus pandemic than the rest of the world, the nine mainland cities remain resilient and reported economic growth last year. The Greater Bay Area would have ranked ninth globally if it was a stand-alone economy,” said Robert Lui Chi-wang, partner at Deloitte.
“The bay area can stay in the top 10 in the medium and longer term because of the many cross-border financial schemes. The Wealth Management Connect scheme and the southbound Bond Connect will be growth engines for the development zone,” he said on Monday.

05:25

Hong Kong's competitive edge questioned as Xi says Shenzhen is engine of China’s Greater Bay Area

Hong Kong's competitive edge questioned as Xi says Shenzhen is engine of China’s Greater Bay Area
The Greater Bay Area’s combined economic output stood at US$1.67 trillion at the end of December last year, which would have made it the world’s ninth largest economy if it was a stand-alone entity ahead of Canada and South Korea and just behind of Italy, according to data provided by the World Bank and governments.
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