The story is another example of how the Wealth Connect programme, introduced more than four years ago, is tightening capital and investment links between mainland China, Hong Kong and Macao.

HSBC, Industrial Bank, Hong Kong
HSBC Hong Kong has introduced Industrial Bank as its third mainland partner bank under the cross-border Wealth Management Connect Scheme, effective yesterday. The lenders inked their memorandum of understanding for the partnership earlier in the year.

Following the pact, HSBC and its partner banks have expanded the wealth management products available to Southbound and Northbound investors under WMC to more than 500 options.

The “Connect” scheme, which was originally established in 2021, is designed to entrench two-capital and investment flows between Hong Kong, mainland China and Macao. It is part of Beijing's efforts to turn the Greater Bay Area into a wealth management powerhouse. In October last year, Bloomberg Intelligence predicted that Hong Kong’s private wealth assets under management could nearly double to $2.3 trillion by 2030, as China’s growing affluence increases investment through the city’s cross-border financial infrastructure.

Out of the 500-plus options, HSBC Hong Kong distributes more than 200 wealth management products to customers – such as unit trust products, bonds, and deposits – through its Southbound services.

“Since the WMC launched in 2021, we’ve seen steady growth in both the number of investors and the cumulative amount of cross-boundary fund remittances, underpinned by its subsequent enhancements,” Brian Hui, chief customer officer, wealth and personal banking, Hong Kong, HSBC, said. “As the scheme continues to evolve with possible relaxation in investment quota, product suite and selling process, we’re excited to partner with Industrial Bank to further strengthen our cross-boundary wealth management capabilities and seize future opportunities.”

In February, HSBC in Hong Kong said it was expanding its team of financial advisors using Wealth Portfolio Intelligence Service, a portfolio analytic available to Premier Elite and Premier customers, to provide advisory service to Southbound [mainland to Hong Kong] investors.