Just after the May 1st holiday, the "Guangdong-Hong Kong-Macao Greater Bay Area "Cross-border Wealth Management Connect" Business Pilot Implementation Rules (Draft for Comments)" was finally released, and the financial interconnection of the Guangdong-Hong Kong-Macao Greater Bay Area is another city. The reporter learned that the consultation will end on May 21, and the first "Cross-border Wealth Management Connect" product may be launched one month later.
The so-called "Cross-border Wealth Management Connect" business refers to the closed-loop capital channel established by the mainland and Hong Kong and Macao investors in the Guangdong-Hong Kong-Macao Greater Bay Area through the regional banking system to cross-border investment in qualified investment products or wealth management products sold by the counterparty's bank.
The reporter learned that many banks have completed the system docking, and they are gearing up for the implementation of the "Cross-border Wealth Management" business. For example, at the press briefing for the first quarter of 2021 of the Guangdong banking industry held last month, Fang Qi, vice president of China Guangfa Bank, said that the bank has reached a cooperation intention with Citi Hong Kong to systematically realize the "Southbound Link" with Macau Branch. ” and “Northbound Link”, which meet the currently clarified regulatory requirements and initially have the system conditions for conducting business.
This consultation draft was jointly drafted by Guangzhou Branch of the People's Bank of China, Shenzhen Central Sub-branch, China Banking and Insurance Regulatory Commission Guangdong Regulatory Bureau, Shenzhen Regulatory Bureau, China Securities Regulatory Commission Guangdong Regulatory Bureau, and Shenzhen Regulatory Bureau. The mystery of "who can buy", "how much can be bought", "who can sell" and "what can be bought" cross-border wealth management products.
Who can buy?
It clearly stipulates the “threshold” for mainland investors to invest in “Cross-border Wealth Management Connect”, which must meet the following three conditions:
1, have full capacity for civil conduct.
2. Have household registration in 9 mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area or have paid social security or personal income tax in 9 mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area for 5 consecutive years.
3. Have more than 2 years of investment experience and meet the family financial net assets in the last 3 months. The end-of-month balance shall not be less than RMB 1 million, or the monthly-end balance of household financial assets in the last three months shall not be less than RMB 2 million. How much can
buy at most?
At the same time, the "Cross-border Wealth Management Connect" business will implement quota management for individual investors, and the investment quota is 1 million yuan. Mainland banks should ensure that Mainland investors use their own funds to purchase investment products, and do not raise funds from others or use other non-own funds for investment.
Which banks can open their business?
Which mainland banks can participate? The draft for comments proposes the following five conditions for mainland agency banks and mainland cooperative banks:
1. To register as a corporate bank or to set up branches in 9 mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area.
2. More than 3 years of experience in cross-border RMB settlement business.
3. The internal control system, operating procedures, account management and risk control measures for carrying out the “Cross-border Wealth Management” business have been established to ensure that there are professionals, business processing systems, and accounting personnel required for the “Cross-border Wealth Management” business and its risk management. Human and material resources such as accounting system and management information system.
4. Establish a mechanism for protecting the rights and interests of investors and resolving complaints and disputes in the “Cross-border Wealth Management Connect”.
5. With the technical conditions for controlling the cross-border flow of funds and ensuring the closed-loop transfer of funds, the mainland agency bank also needs to have the technical conditions to ensure the closed management of funds, so as to ensure that the "Northbound" investment products sold by the agency meet the relevant requirements of the financial management department.What can
buy?
"Northbound Link", that is, the range of products that Hong Kong and Macao investors can invest in include:
1. Mainland wealth management companies (including bank wealth management subsidiaries and foreign-controlled joint venture wealth management companies) are issued in accordance with the relevant management measures for wealth management business, and are approved by issuers and Non-principal-guaranteed net worth wealth management products (excluding cash management wealth management products) that are rated as "Tier 1" to "Tier 3" risks by mainland agency banks.
2. Publicly offered securities investment funds that have been assessed as “R1” to “R3” risks by mainland public fund managers and mainland agency banks. Department regulations. According to the reporter's understanding, the investable products of "Southbound Link" will mainly focus on "low" to "medium" risk financial products.
[Reporter] Tang Liuwen and Chen Ying "Cross-border Wealth Management Connect" Business Pilot Implementation Rules (Draft for Comments)"
[Author] Tang Liuwen; Chen Ying
289Finance Hotspot
Source:South + - Creating More Value
