Hong Kong well-placed to create synergy in the GBA
Hong Kong is set to perform its pivotal role in driving interconnectivity and boosting cross-border financial services in the Greater Bay Area, creating a new situation of win-win cooperation.
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As the much-anticipated Wealth Management Connect scheme is expected to launch soon, Hong Kong’s financial sector is getting ready to tap into new business opportunities that emerge from the scheme. Regulators released the draft rules in early May, bringing the cross-border investment scheme a step closer to realization.
The scheme, the first cross-border investment program in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), is a move to further open up the Mainland’s financial market, promote economic integration in the GBA and reinforce Hong Kong’s role as China’s leading offshore renminbi (RMB) market.
Over the past decades, Hong Kong has served as a two-way gateway connecting the Mainland and international markets. The city was the first offshore market to launch RMB business in 2004 and has since become the global hub for RMB trade settlement, financing and asset management.
As it is of strategic importance to promote financial cooperation in the GBA1, with the “One Country, Two Systems” principle, intact financial infrastructure, Hong Kong is well positioned to enhance regional interconnectivity and promote synergy in the GBA.
“Hong Kong could strengthen its position as a global center for offshore RMB businesses, bolstering connectivity of regional financial markets and infrastructure,” says Jack Chan, Chairman, China, Regional Managing Partner, Greater China, EY. “The soon to be launched Southbound Trading for Bond Connect will also give mainland investors easy access to foreign bonds in Hong Kong, boosting liquidity in the city and further capitalizing on the synergy and acting as an investment gateway for the GBA.”
