How to raise your net worth under WMC?
The Greater Bay Area (GBA) comprising Hong Kong, Macau, and 9 cities on the Pearl River Delta of mainland China represents an open and economically vibrant region. With a population of 70+ million, it has a combined GDP of US$1.6 trillion (RMB￥10.7 trillion) and a per capita GDP of US$23,000 (RMB￥150,000)1. It is home to cutting-edge innovation, thriving technology hub, and diverse industrial chains, making it best positioned for success and prosperity.
To improve financial connectivity, create more channels for success and benefit people across the region, the People's Bank of China, the Monetary Authority of Macau, and the Hong Kong Monetary Authority announced an initiative to promote a two-way, cross-boundary wealth management programme - the Wealth Management Connect (WMC) scheme.
What opportunities are set to bloom for investors?
Under the WMC scheme, residents from the mainland cities of GBA can invest in certain non-high risk and non-complex wealth management products distributed by banks in Hong Kong and vice-versa.
The programme is expected to widen the scope of personal financial investment opportunities available to clients within GBA. Investors from mainland GBA can now access cross-border wealth management products and services in Hong Kong. This new market is also expected to enhance diversification by bringing together competing financial institutions looking to offer differentiating products. Another corollary advantage resulting from this scheme is its contribution to the development of the renminbi currency through cross-border circulation. Consequently, the stability of renminbi can not only improve the returns on an investor’s domestic investments but also expand off-shore business in renminbi.
The WMC scheme, therefore, is undoubtedly a novel venture for all financial institutions and investors in the region, geared towards wealth generation. But before investing, what are the advantages that can underline your investment in Hong Kong?
Take advantage of WMC, up your investment options
The Wealth Management Connect scheme is a key initiative in elevating the cross-boundary investment activity and enabling robust growth for the private wealth management industry within the GBA. For high yielding investment diversification and assessing emerging growth opportunities across the GBA, connect with DBS Treasures and arrange for a detailed consultation with our experts.
1 Wealth Management Connect Scheme in the Greater Bay Area. Sourced from Hong Kong Monetary Authority in November 2021.
