The Cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area launched today will further consolidate Hong Kong's role as the country's international financial centre, Chief Executive Carrie Lam said.

The scheme enables residents in Hong Kong, Macau and nine cities in Guangdong Province to carry out cross-boundary investment in wealth management products distributed by banks in the Greater Bay Area. The investment products covered are those relatively simple with low to medium risk.

Officiating at the online launch ceremony, Mrs Lam said Hong Kong is very grateful for the central government's support and the preparation work by relevant regulatory authorities for carrying out this scheme long-awaited by the industry.

She noted that the scheme is a milestone in the financial development of the bay area and an important measure that deepens and widens mutual access between the financial markets of the Mainland and Hong Kong.

It also underlines the unique advantages of Hong Kong's financial system under the “one country, two systems” principle, contributes to the high-quality development of the bay area and facilitates the financial development and further opening-up of the country.

The Chief Executive added that the scheme is the first mutual market access mechanism for individual investors which is conducive to the facilitation of cross-boundary investment by individual residents of the bay area. Therefore, it is also a crucial livelihood-related project.

Financial Secretary Paul Chan said the scheme will expand the cross-boundary investment channel and asset allocation choices for residents in the bay and open up a broader market for the financial and relevant professional sectors, thereby bringing enormous business opportunities.

It will also attract more international financial institutions to have a foothold in Hong Kong to expand their Mainland businesses, which can further reinforce the city's role as an important gateway for capital flowing into and out of the Mainland, as well as its position as the global offshore renminbi business hub and an international asset management centre.

According to the scheme's implementation details, institutions with retail banking or private banking business and registered under the Securities & Futures Ordinance for carrying out Type 1 (Dealing in securities) regulated activities can establish Wealth Management Connect business in Hong Kong.

There will be an aggregate quota of RMB150 billion in each direction and an individual investor quota of RMB1 million for the Southbound and Northbound Wealth Management Connect.

Under the northbound one, Hong Kong investors have to open a designated remittance account at an eligible bank of their own choice in Hong Kong and a designated investment account with its Mainland partner bank.

The Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area announced its support for exploring the establishment of a cross-boundary wealth management connect mechanism following its third plenary meeting held in November 2019.

The Mainland financial regulators then introduced various measures, including the Wealth Management Connect, in relation to the development of bay area finance in May last year.

In February, the regulators of the three places announced that they have signed a memorandum of understanding on the principles of supervisory co-operation under the Wealth Management Connect.