Banks in Hong Kong, Macao and China's neighboring Guangdong province are preparing to launch regional investment products soon, Hong Kong's Monetary Authority said Friday.
The investment options, dubbed the Wealth Management Connect program, are part of a plan to allow residents to invest privately between cities in the Greater Bay Area, which encompasses those areas.
The Greater Bay Area plan is part of a broader move to integrate the Chinese mainland more closely with Hong Kong and Macao. It will have a quota of 300 billion yuan ($47 billion) in combined fund flows. Individuals can invest up to 1 million yuan ($155,000) each in the scheme, which was first announced by China's central bank on Thursday.
The Greater Bay Region has a population of over 70 million and a gross domestic product of nearly $1.7 billion, comparable to South Korea's economy. "Realistically speaking, we're expecting banks to launch their products under the wealth management connect scheme in a month or two," Edmond Lau, deputy chief executive of the Hong Kong Monetary Authority said in a news conference Friday.
The announcement comes days after Beijing announced plans to include Qianhai, a special co-operation zone in Guangdong's Shenzhen, and Hengqin, an island in the southern city of Zhuhai, as part of the Greater Bay Area's long-term development. The Chinese government launched the Greater Bay Area development plan in 2017, aiming to create a global economic, innovation and technology hub.