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Greater Bay Area
BusinessInvestor Relations

Chinese investment to account for over half of assets under management in five years, survey by Hong Kong industry body finds

  • Mainland investment could account for 51 per cent of assets managed by Hong Kong private wealth firms in five years: Private Wealth Management Association
  • Working with regulators to increase personal quotas to US$1 million, widen the product scope, says chairman of industry body

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The Greater Bay Area remains a key focus point for the Hong Kong private wealth management industry. Photo: AP Photo
Martin Choi
Investment from mainland China could account for more than half of assets under management in Hong Kong’s private wealth management industry in five years thanks to the newly launched Wealth Management Connect scheme, according to a local industry body.
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A survey conducted by the Private Wealth Management Association (PWMA) found that its member institutions expected the increase in investment from the mainland to touch 51 per cent in five years, which it said emphasised the “growing significance of mainland China to Hong Kong’s private wealth management industry”.

About 41 per cent of assets managed by Hong Kong’ private wealth management firms currently come from mainland China. Last year, this number stood at 40 per cent.

“Mainland China has continued to be a key priority for our members, particularly with the launch of the Wealth Management Connect scheme. We look forward to engaging with relevant authorities on how to expand the scope of the pilot scheme in the future,” said Amy Lo, chairman of the PWMA’s executive committee.

The Wealth Management Connect scheme was formally kicked off last month between Hong Kong, Macau and the nine provincial cities in Guangdong that collectively constitute the Greater Bay Area development zone. The programme lets mainland Chinese investors domiciled in the area invest in approved wealth management products in Hong Kong and Macau, and allows foreign investors to tap financial products sold in China through the two special administrative regions.
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An initial quota of 300 billion yuan (US$46.47 billion) – with half the amount being traded in each direction – was set by the Hong Kong Monetary Authority in October last year. About 300 investment funds in Hong Kong have qualified to offer financial products in the Greater Bay Area zone, where investors are entitled to invest up to 1 million yuan each.
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