Finance lobby group calls for bolder overhaul of Wealth Management Connect scheme to boost Chinese investments
- The investment quota for individuals should be raised to 8 million yuan (US$1.1 million) from 3 million yuan, says the CEO of ASIFMA
- The scheme should also include products that mostly invest in global markets like the US and Europe, the lobby group suggests
Regulators should take bolder steps to expand the Wealth Management Connect scheme and encourage more investments in Hong Kong products by mainland China-based investors, according to a finance lobby group.
The government’s recent adjustments are “steps in the right direction”, but further relaxations are needed, as the support provided now is “not significant” enough to revitalise the industry, according to Peter Stein, CEO of Asian Securities Industry & Financial Markets Association (ASIFMA).
The scheme should raise the investment quota of individual investors to 8 million yuan (US$1.1 million), up from the current 3 million yuan, Stein said. That would allow them to meet the threshold for being classified as “professionals”, giving them access to a wider range of products.
The scheme should also open more products to mainland investors, such as those managed by subsidiaries of Hong Kong-domiciled funds and primarily investing in global markets like the US and Europe, said Eugenie Shen, head of ASIFMA’s asset management group.
Giving mainland users more diverse choices could boost investments, she said. “It’s really about mutual benefits for both the industry and investors.”
