(Q6): Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area
MR CHAN CHUN YING:
Thank you, President. According to the main reply, the financial regulatory authorities of the Mainland, Hong Kong and Macao jointly announced in late September this year that they would enhance Cross-boundary WMC along five directions, one of which is increasing the individual investor quota. According to the main question, the current aggregate quota usage under the Southbound Scheme and Northbound Schemes was around RMB2.58 billion in total, and the number of investors was 62 900. Upon calculation, the current investment amount per head was about RMB41,600, which is quite a long way from the current quota of RMB1 million.
I personally support the increase in quota, but I would like to ask the Bureau: What criteria does it adopt in evaluating the magnitude of the increase and thus accessing and determining the appropriate investment quota? Thank you.
SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY:
Thank you, President. In response to Mr CHAN’s supplementary question, I believe we should consider Cross-boundary WMC from a dynamic or overall perspective.
The Member asked about the quota just now. In fact, the quota usage depends on the products affordable by investors, their experience gained in the sales and promotion processes, and the information they obtain before making an investment decision. Therefore, we need to consider the five enhancement directions as a whole to form a comprehensive understanding of how the quota can serve the needs of investors while the regulatory requirements on risk control can be met in all three places. The overall objective is to strike a balance, and under such a balance, we hope to serve the investment needs of GBA residents to a greater extent.