Improvements to the Wealth Management Connect scheme in February have proven to be a game-changer, with investment via the cross-border trading channel jumping by four times between January and April, according to government data and industry players.
The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, while the number of investors using it rose 60 per cent to 110,000, according to government data.
ICBC Asia has seen a significant increase in customers and assets under management since the enhancements to the Wealth Management Connect scheme were introduced, said Jimmy Jim Wai-kee, managing executive officer and head of the lender’s global market department.
“People are really making use of the cross-border scheme to capture offshore opportunities in Hong Kong and international markets. The demand is huge,” Jim said.
Launched in 2021, the Wealth Management Connect allows residents of Hong Kong, Macau, and nine cities in Guangdong province to invest directly in designated wealth management products across borders.
New rules implemented in February, known as Wealth Management Connect 2.0, have expanded product choices and increased investment quotas, leading to a surge in trading activity. ICBC Asia is focused on wealth management development and expanding in the Greater Bay Area and overseas markets.