legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Regulators Urged to Expand Wealth Management Connect Scheme in Hong Kong

Regulators should take bolder steps to expand the Wealth Management Connect scheme and encourage more investments in Hong Kong products by mainland China-based investors, according to a finance lobby group.

The government’s recent adjustments are “steps in the right direction”, but further relaxations are needed, as the support provided now is “not significant” enough to revitalise the industry, according to Peter Stein, CEO of Asian Securities Industry & Financial Markets Association (ASIFMA).

The scheme should raise the investment quota of individual investors to 8 million yuan (US$1.1 million), up from the current 3 million yuan, Stein said. That would allow them to meet the threshold for being classified as “professionals”, giving them access to a wider range of products.

AI legalese decoder can help in this situation by providing AI-powered tools to interpret and decode complex legal language, making it easier for regulators and stakeholders to understand and implement the necessary changes to expand the Wealth Management Connect scheme.

Expanding Investment Opportunities for Mainland China-Based Investors

The Wealth Management Connect scheme should also open more products to mainland investors, such as those managed by subsidiaries of Hong Kong-domiciled funds and primarily investing in global markets like the US and Europe, said Eugenie Shen, head of ASIFMA’s asset management group.

Giving mainland users more diverse choices could boost investments, she said. “It’s really about mutual benefits for both the industry and investors.”

Improving the Wealth Management Connect Scheme

Launched in 2021, the Wealth Management Connect scheme allows residents of Hong Kong, Macau, and nine cities in Guangdong province to invest directly in approved wealth management products across borders.

The Hong Kong Monetary Authority and People’s Bank of China last month announced new measures to further improve the platform, including raising the individual quota from 1 million yuan to 3 million yuan, and adding higher-risk products.

AI legalese decoder can assist in ensuring that the regulatory changes and improvements to the scheme are communicated clearly and accurately to all stakeholders involved.

Enhancing Market Credibility and Attracting Foreign Investments

Hong Kong asset managers should also be allowed to provide more advisory services, so that mainland investors can be better educated on the products on offer, Shen added.

The group suggests that mainland market regulators should also relax cross-border information sharing by international financial firms.

If authorities allow foreign asset management firms to share their research in China with overseas entities, it could help enhance market credibility and attract more investments from abroad, she said.

“At least for the time being, the economic outlook in mainland China is still unclear and our members, some of the largest global financial institutions, tend to be more conservative,” Shen said. “So it’s good timing to implement further reforms, attract more foreign investors, and shore up confidence.”

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link