"Cross-border Finance Link" first month report card is dazzling

The picture shows Hong Kong Central with many tall buildings.

Photo by Xinhua News Agency reporter Wang Shen

  It has been a full moon since the launch of the "Cross-border Wealth Management" pilot program in the Guangdong-Hong Kong-Macao Greater Bay Area.

According to data released by the People’s Bank of China Shenzhen Central Sub-branch, Shenzhen’s 20 pilot banks opened a total of 5,079 relevant accounts in the first month of “Cross-border Financial Link”, processed 104 million yuan in cross-border transfers of funds, and individual investors had purchased and invested a total of The product is 54.184 million yuan, and the relevant data respectively account for 39.0%, 39.5% and 36.2% of the total business volume of the "Cross-border Financial Link" in the entire Greater Bay Area.

  Regarding the first-month report card of "Cross-border Financial Link", industry insiders generally stated that as a new business, its performance is quite good.

In the future, as the Guangdong-Hong Kong-Macao Greater Bay Area continues to speed up interconnection, the "Cross-border Wealth Management" mechanism will continue to improve and mature, some blocking and pain points will be resolved, business handling convenience will be further improved, and its scale is expected to usher in explosive growth. It is looking forward to.

  Trading in both the north and the south is more active

  The relevant person in charge of the People’s Bank of China Shenzhen Central Sub-branch (hereinafter referred to as the “Shenzhen Sub-branch”) introduced that since the launch of the “Cross-border Financial Link” business pilot in the Guangdong-Hong Kong-Macao Greater Bay Area on October 19, as of mid-November, 20 in Shenzhen area Pilot banks have opened a total of 5,079 accounts related to the "Cross-border Finance Link" business, handled 104 million yuan of cross-border fund transfers, and individual investors participating in the "Cross-Border Finance Link" purchased a total of 54.184 million yuan in investment products.

The “Cross-border Financial Link” business process shows that the transactions in both the north and the south are more active, the business area is mainly Shenzhen and Hong Kong, the preference of south and north investors for investment products is slightly different, and various types of banks are actively participating.

  According to the identity of the investment subject, "cross-border financial management links" are divided into "southbound links" and "northbound links".

"Southbound Link" refers to local investors in the Greater Bay Area to open personal investment accounts in Hong Kong and Macau sales banks to purchase investment products sold by Hong Kong and Macau sales banks; "Northbound Link" refers to Hong Kong and Macau investors opening personal investments in local agencies in the Greater Bay Area. Account to purchase investment products sold by the Mainland agency bank.

  According to the relevant person in charge of the Shenzhen branch, in the first month of the launch of "Cross-border Wealth Management", a total of 2,105 people from Hong Kong and Macau participated in the "Northbound Link". The amount of cross-border transfer of funds was 54.524 million yuan, and the transaction volume of investment products was 39.591 million yuan; a total of 2974 people in the Mainland Participated in the "Southward Link", cross-border transfer of funds amounted to 49.456 million yuan, and investment product transactions amounted to 14.593 million yuan.

  "From a quantitative point of view, due to factors such as the epidemic and'customs clearance' restrictions, Hong Kong and Macau customers cannot go to mainland outlets to open domestic accounts in person. The number of'Northbound' customers is slightly lower than expected. If the'customs clearance' policy is relaxed in the future, I believe The number of "Northbound Link" accounts will increase to a certain extent." Du Bing, vice president of Shenzhen Branch of China Merchants Bank, said.

  There are slight differences in investor preferences between the two places

  Industry experts pointed out that residents in the Guangdong-Hong Kong-Macao Greater Bay Area have accumulated rich wealth, and residents' wealth management needs are also relatively strong.

But at the same time, the residents' investment objectives and wealth management development stages in Guangdong, Hong Kong, and Macao are not the same, so their preferences for investment products are also slightly different.

  Specifically, “Southbound” investors prefer deposits, and “Northbound” investors prefer wealth management products.

According to data from the Shenzhen branch, under the "Northbound Link", individual investors from Hong Kong and Macao purchased 39.591 million yuan of domestic investment products, including 27.918 million yuan in wealth management products and 11.672 million yuan in fund products, accounting for 70.5% and 29.5% respectively; Under "Xiangtong", mainland individual investors purchased a total of 14.593 million yuan in Hong Kong and Macau investment products, including 13.958 million yuan in deposits and 635,000 yuan in investment funds, accounting for 95.6% and 4.4% respectively.

  At the same time, the reporter learned from Hang Seng Bank (China) Co., Ltd., the first pilot bank that launched the "Cross-border Financial Link" service, that individual investors from Hong Kong and Macao with "Northbound Link" prefer to have certain brand awareness, rich asset management experience, and strong strength. For funds issued by public fund managers, investment strategies tend to be fixed income + strategies and short-term debt funds and other investment products.

The "Southbound" mainland investors hope to invest in differentiated and diversified fund products.

Qin Yi, Vice President of Hang Seng Bank (China), said: "The'Cross-border Financial Link' opens up a new channel for personal cross-border investment, promotes the interconnection of the financial market in the Greater Bay Area, and allows individual investors to conduct cross-market and cross-currency transactions. , Diversified asset allocation across asset classes."

  Cross-border investment demand will become stronger

  At present, "Cross-border Wealth Management" is still in the pilot stage, and the first batch of 20 pilot banks are actively participating, hoping to use this as an opportunity to promote cross-border business innovation in the Greater Bay Area and seize the opportunity to seize the market.

According to the data disclosed by the Shenzhen branch, 6 state-owned banks opened 3136 accounts for individual investors and handled 58.227 million yuan in capital transfers, accounting for 61.7% and 56.1% respectively; 7 joint-stock banks opened for individual investors There are 1335 accounts and 27.131 million yuan of fund transfer, accounting for 26.3% and 26.1% respectively; 7 foreign banks opened 608 accounts for individual investors and handled 18.521 million yuan of fund transfer, accounting for 12% respectively And 17.8%.

  Experts and institutions in the industry are optimistically predicting that in the future, with the unimpeded trade and financing of the Greater Bay Area, the integration process of the Bay Area will accelerate and the demand for cross-border investment will become stronger.

"Currently, the residents of Guangdong, Hong Kong and Macao have very close exchanges. Many mainland investors have a demand for allocation of overseas wealth management products, making personal asset allocation more diversified and balanced, and further diversifying risks. Hong Kong and Macao investors also hope to buy products sold on behalf of mainland banks. Invest in wealth management products, further broaden investment channels, and share the dividends of the rapid growth of the mainland economy. Therefore, from a macro perspective, "Cross-border Finance Link" has very broad development prospects." Du Bing said.

  Wang Lingxi

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