Page 82 - 2024 Special Report on the State of Business in South China
P. 82
banks under the Cross-boundary Wealth
Management Connect support investments
by the residents of the mainland, Hong Kong
and Macau in the eligible wealth management
products sold by banks in each other’s market.
The launch of the WMC pilot scheme provides
GBA residents with more choices in wealth
management products, further facilitates the
cross-boundary flow and usage of the RMB,
enhances convenience to personal investment
and the bilateral liquidity of RMB capital flows,
and breaks new grounds for the financial
industries of these three economies.
It has been two years since the launch of the • The Shenzhen-Hong Kong stock connect
Cross-boundary Wealth Management Connect.
According to the data released by the People’s Since its launch in December 2016, the Shenzhen-
Bank of China, as of the end of May 2023, the Hong Kong Stock Connect has continued to expand
nine mainland cities of the GBA have reported its offering of eligible stocks in order to catch up
32 eligible banks. Twenty-five banks obtained with the pace of development in the two markets
eligibility in Shenzhen. There were 53,000 and facilitate the joint development of the capital
individual investors participating in the scheme, markets. The listed companies on the Hong Kong
amongst whom 39,500 were Hong Kong and Stock Exchange (HKEX) with weighted voting rights
Macau investors, involving a remittance volume (WVR), biotechnology companies, and the A+H
of RMB3.951 billion11. This indicates a positive Share companies on the Growth Enterprise Market
sentiment of the investors, and it also reflects the (GEM) were included into the eligible stock list in
fact that the WMC has deepened the integration southbound trading. Eligible exchange traded funds
of the financial markets of the GBA in the areas of (ETF) listed in the two markets were also included
regulation, product, services and system. into the Shenzhen-Hong Kong Stock Connect.
11 The People’s Bank of China, Guangzhou On 3 March 2023, the Shenzhen Stock
Branch, Report of Business Conditions under the Exchange (SZSE) amended its measures for the
Cross-Boundary Wealth Management Connect (May Implementation of Shenzhen-Hong Kong Stock
2023) Connect program. It added some new categories
based on the current eligible stocks, including
the stocks of eligible major foreign companies
listed in the Hang Seng Index and the stocks of
more enterprises listed in Shenzhen. In July 2023,
according to a report of the Shanghai Securities
News, the regulatory authorities of Shenzhen and
Hong Kong are exploring the extension of the stock
connect initiative to the real estate investment
trusts (REITs) market. This will certainly engender a
82
Management Connect support investments
by the residents of the mainland, Hong Kong
and Macau in the eligible wealth management
products sold by banks in each other’s market.
The launch of the WMC pilot scheme provides
GBA residents with more choices in wealth
management products, further facilitates the
cross-boundary flow and usage of the RMB,
enhances convenience to personal investment
and the bilateral liquidity of RMB capital flows,
and breaks new grounds for the financial
industries of these three economies.
It has been two years since the launch of the • The Shenzhen-Hong Kong stock connect
Cross-boundary Wealth Management Connect.
According to the data released by the People’s Since its launch in December 2016, the Shenzhen-
Bank of China, as of the end of May 2023, the Hong Kong Stock Connect has continued to expand
nine mainland cities of the GBA have reported its offering of eligible stocks in order to catch up
32 eligible banks. Twenty-five banks obtained with the pace of development in the two markets
eligibility in Shenzhen. There were 53,000 and facilitate the joint development of the capital
individual investors participating in the scheme, markets. The listed companies on the Hong Kong
amongst whom 39,500 were Hong Kong and Stock Exchange (HKEX) with weighted voting rights
Macau investors, involving a remittance volume (WVR), biotechnology companies, and the A+H
of RMB3.951 billion11. This indicates a positive Share companies on the Growth Enterprise Market
sentiment of the investors, and it also reflects the (GEM) were included into the eligible stock list in
fact that the WMC has deepened the integration southbound trading. Eligible exchange traded funds
of the financial markets of the GBA in the areas of (ETF) listed in the two markets were also included
regulation, product, services and system. into the Shenzhen-Hong Kong Stock Connect.
11 The People’s Bank of China, Guangzhou On 3 March 2023, the Shenzhen Stock
Branch, Report of Business Conditions under the Exchange (SZSE) amended its measures for the
Cross-Boundary Wealth Management Connect (May Implementation of Shenzhen-Hong Kong Stock
2023) Connect program. It added some new categories
based on the current eligible stocks, including
the stocks of eligible major foreign companies
listed in the Hang Seng Index and the stocks of
more enterprises listed in Shenzhen. In July 2023,
according to a report of the Shanghai Securities
News, the regulatory authorities of Shenzhen and
Hong Kong are exploring the extension of the stock
connect initiative to the real estate investment
trusts (REITs) market. This will certainly engender a
82
