China sets limits in plan to ease capital controls in Greater Bay Area under cross-border wealth management scheme
- Each investor can only invest up to 1 million yuan worth of investment products under the new scheme
- The Wealth Management Connect would take an incremental approach, with possibilities for enhancements: HKMA

Authorities on both sides of the borders have set an aggregated quota of 300 billion yuan (US$45 billion) in fund movements in both directions between the nine cities in southern Guangdong province and the two special administrative regions.
Beijing, Hong Kong and Macau have also limited individual investors to 1 million yuan worth of investment products they can each purchase under the scheme, known as Wealth Management Connect, a Hong Kong Monetary Authority spokesman said.

The aggregate quota and investment limits were decided after several months of consultation with market participants, the HKMA spokesman said in reply to a query from the Post on Thursday. The scheme is expected to kick off early next year.
“Like other connect schemes, we envisage the Wealth Management Connect would take an incremental approach, starting with a smooth launch, with possibilities for enhancements down the road,” he said. “Therefore, regulatory authorities aim to be pragmatic and prudent in the design of the scheme features, with proper risk controls.”