HSBC is among the first batch of banks to launch services under the cross-boundary Wealth Management Connect pilot scheme in the Guangdong-Hong Kong-Macau Greater Bay Area. The Hongkong and Shanghai Banking Corporation Limited (HSBC Hong Kong), partnering with HSBC Bank (China) Company Limited (HSBC China), launches the HSBC GBA Wealth Connect on October 19, enabling residents in the GBA to make cross-boundary investments in over 100 wealth management products 24/7 digitally.

David Liao, co-chief executive of HSBC Asia-Pacific, says Wealth Management Connect underlines China’s commitment to opening up its financial markets. “These initiatives promote financial connectivity in the GBA, create deeper investment markets, and accelerate renminbi internationalization,” Liao notes. “The launch of Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect over the years have all been important milestones for China’s capital market liberalization.”

The bank will set up about 60 Wealth Management Connect centres in existing GBA retail outlets where dedicated staff will help customers with account opening and enquiries related to the HSBC GBA Wealth Connect. Customers may also visit any of HSBC’s other retail outlets in the GBA if they have queries.

At launch, HSBC will offer over 100 eligible wealth management products to eligible investors. Mainland GBA customers will have access to multi-asset, bond, and money market funds in various currencies managed by global and regional fund managers, bonds issued by international companies and governments, as well as deposits in 11 currencies. Hong Kong customers can choose among a number of multi-asset funds, bond funds and money-market funds offered by leading asset managers.

The bank will not charge remittance fees under HSBC GBA Wealth Connect for money transfers made between accounts in mainland China and Hong Kong via mobile and online banking.

Greg Hingston, HSBC regional head of wealth and personal banking for Asia-Pacific, notes that the  GBA is one of the wealthiest regions in the country with over 450,000 families holding at least 6 million yuan (US$932,994) in investable assets. Yet, less than 20% of GBA residents in mainland China have overseas wealth products in their portfolios. “The launch of Wealth Management Connect opens a new window for investment and stimulates demand for cross-boundary wealth management solutions,” he adds.

For southbound services, existing HSBC China customers may complete the account opening process in around 30 minutes at any of the 26 WMC centres in mainland China. For northbound services, customers will need to open a dedicated remittance account in any Hong Kong branch before visiting any of the 26 WMC centres in the mainland to open a dedicated investment account. HSBC Hong Kong customers who already have an HSBC China account opened in a GBA branch can complete the application for northbound services at any Hong Kong branch within 30 minutes, without having to travel to the mainland.

Under the scheme, cross-boundary remittance must be conducted between the paired dedicated investment and remittance accounts maintained with HSBC Hong Kong and HSBC China as partnering banks. Once the accounts are opened and paired, customers can invest in a range of products and manage their portfolio 24/7 using the bank’s mobile app or online, where they can also receive timely and distinctive market insights.