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Chinese regulators have announced the names of 14 licensed corporations (LCs) that can take part in the expanded Wealth Management Connect (WMC) scheme in the Greater Bay Area.

The LCs represent the first batch of brokers to offer cross-boundary investment services for Greater Bay Area investors.

The announcement follows Hong Kong recently being described as likely to overtake Switzerland as the world’s largest cross-border financial centre, in part because of the WMC system that was originally launched in 2021.

Initially, the WMC was only open to banks seeking to tap into two-way flows between Hong Kong, mainland China and Macao. In January this year, China’s central bank issued guidance on how the scheme should operate, after it had opned it to Greater Bay Area securities firms. 

The LCs are China Galaxy International Securities (Hong Kong) Co; China Industrial Securities International Brokerage; China International Capital Corporation Hong Kong Securities; China Merchants Securities (HK) Co; China PA Securities (Hong Kong) Company; China Securities (International) Brokerage Company; CITIC Securities Brokerage (HK) Limited, GF Securities (Hong Kong) Brokerage; Guosen Securities (HK) Brokerage Company; Guotai Junan Securities (Hong Kong); Huatai Financial Holdings (Hong Kong); SDICS International Securities (Hong Kong); Shenwan Hongyuan Securities (H K); and Zhongtai International Securities Limited.

“Today’s announcement marks another significant milestone for the brokerage industry and the WMC scheme in terms of enhancing the connectivity of financial markets in the GBA and fostering Hong Kong’s wealth management business,” Julia Leung, CEO of the Securities and Futures Commission of Hong Kong, said. â€śThe SFC will continue to work with stakeholders to further enhance and expand the WMC scheme, as well as addressing the evolving cross-boundary needs of investors and the industry.”

The China Securities Regulatory Commission said it will announce the list of confirmed mainland partner brokers separately.

The WMC and other cross-border investments schemes offer ways for mainland China to cement the Greater Bay Area’s financial prowess. Hong Kong, meanwhile, has brought out several programmes to attract family offices, sharpening its rivalry with hubs such as Singapore.