Tapping Wealth Management Connect business will be a challenge for bankers and investment advisers
- Bankers and advisers looking to sell wealth management products in the Greater Bay Area have to tweak their services based on cultural differences
- Investors in the Greater Bay Area have diverse investment appetite
A survey conducted by the HKIFA last year found that mainland Chinese investors on average wanted annual returns of 13 per cent from their investments in funds allowed under the wealth connect scheme. They were also likely to tolerate losses of up to 8 per cent per year. Some 1,000 residents living in Guangzhou, Shenzhen, Foshan and Zhuhai were asked about their views on investing in the new connect scheme between April and May.
The accounting sector is also doing its part in supporting the development of the bay area by nurturing talent who are able to understand the mentality of people living across the 11 cities, according to Jasmine Lee, partner and Chinese inbound accounts leader for financial services at EY.
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She said challenges were cropping up on how to nurture talent in the accounting sector. “To what extent do we understand GBA investors’ expectations? How is their mentality different from the people in Hong Kong?” she asked.
Still, opportunities abound in the bay area, other participants said.
The wealth management scheme is similar to “an incubator” that would enable Hong Kong to eventually link up its financial market with the rest of China, said Mark Austen, chief executive of the Asia Securities Industry & Financial Markets Association, a regional trade association headquartered in Hong Kong.
“There is a huge talent base across the GBA. For financial services, we see the prospect of dual licensing, so that ultimately someone in Hong Kong would be able to do business in the GBA without having to apply for a separate licence,” he said.