On Monday, China unveiled a long-awaited scheme connecting investments in wealth management products in Hong Kong, Macau and neighboring Chinese cities on the mainland. The pilot scheme “Wealth Management Connect” would allow individuals in Hong Kong , Macau and a group of nine towns in the southern Guangdong province of mainland China, which together form the “Greater Bay Area,” to purchase these goods on the markets of each other.
Mainland China has strict capital controls, while Macau and Hong Kong do not. According to a joint statement released on Monday by the People’s Bank of China, the Hong Kong Monetary Authority and the Macao Monetary Authority, China will set investment quotas for the scheme which will be changed based on macro-prudential factors.
Cross-border remittances in the system will be carried out in yuan, and offshore currency transfers related to the system, the statement said. The scheme official start date will be revealed later, it said.