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GBA Wealth Management Connect scheme sees 4,000 Macau and mainland residents open accounts

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Around 4,000 residents of Mainland China and Macau have opened accounts via the Wealth Management Connect scheme for the Greater Bay Area, with around 900 transactions registered, the Monetary Authority of Macau (AMCM) revealed.

The scheme started operating locally on October 19 with eight local banks currently authorised to provide services under the scheme, namely: Bank of China, Macau Branch; Bank of Communications; China Guangfa Bank Co Ltd Macau Branch; CMB Wing Lung Bank; Industrial and Commercial Bank of China (Macau); Luso International Banking; and Tai Fung Bank.

The scheme was officially launched by Beijing a month ago and allows Hong Kong and Macau residents to invest in onshore Chinese investment products through banks in the Greater Bay Area, while residents of nine cities in Guangdong province can invest in Hong Kong and Macau wealth products through local lenders.

The 4,000 registered via the local scheme included 300 investors from Mainland China opening ‘ Southbound transaction’ accounts, while around 3,600 Macau registered for ‘Northbound transaction accounts’.

Under the scheme, Macau residents can open a funds transfer account for Northbound Transactions with the approved local banks and an RMB investment account with cooperating banks in Mainland China of these Macau banks in order to purchase products low to medium risk financials marketed by Mainland banks, such as fixed income public offering financial products, bonds, as well as public offering securities investment funds.

At the same time, Mainland Chinese residents can open an investment account for Southbound Transactions, through the testimony of the cooperating banks in Mainland China, in the form of an agency, or in person at the banks of Macau.

About 15 per cent of all 900 transactions reported included the In-depth Cooperation between Guangdong and Macau in Hengqin.