Three-way express

Over 22,000 people have participated in the cross-border wealth connect scheme between Guangdong province, Hong Kong and Macau, with more Macau residents interested in exploring the financial products available across the border than the other way round.

In the wake of the implementation less than half a year ago, the unprecedented Cross-Border Wealth Management Connect (WMC) Scheme in the Guangdong–Hong Kong–Macao Greater Bay Area has attracted keen interests from Macau investors in exploring more renminbi-denominated financial products, and there is still room for the local sector to develop more to attract investors across the border.

The WMC Scheme, which was officially piloted last October, comprises two main components: the so-called Northbound Flow allows eligible residents in Macau and Hong Kong to invest in wealth management products distributed by the GBA banks in the mainland; while the Southbound Flow permits mainland Chinese residents domiciled in the mainland GBA cities to invest in the products offered by the lenders in the two special administrative regions.

A total of nine Macau lenders have so far joined this scheme, including OCBC Wing Hang Bank (Macau) that has only been recently approved for catering to mainland investors, alongside Bank of China Macau Branch, Industrial and Commercial Bank of China Macau Branch, Tai Fung Bank, Luso International Banking and others.

According to the Monetary Authority of Macau (AMCM), over 10,900 Macau residents joined the Northbound Flow of the scheme to at least open investment accounts across the border, while nearly 400 residents from the GBA cities in the mainland participated in the Southbound Flow to be involved in Macau as of end-2021, resulting in over 2,500 transactions on both sides. The city’s de facto central bank noted in a statement the WMC Scheme has been “warmly received” in the market.

Source: https://www.macaubusiness.com/three-way-express/