HSBC & Nielsen Survey: 82% of China GBA Mainland Investors to Invest in Wealth Management Connect
13th May 2021 | Hong Kong
HSBC and Nielsen released the survey result of 1,606 citizens in China’s Greater Bay Area on the Wealth Management Connect scheme, with 82% of China Mainland investors in the Greater Bay Area (GBA) planning to invest in Hong Kong via the Wealth Management Connect Scheme.
” 82% of China GBA Mainland Investors to Invest in Wealth Management Connect “
Currently, for individual investors, Hong Kong and Macau investors cannot invest direct into Mainland stocks while Mainland investors cannot invest into Hong Kong stocks. The current regulations only allow qualified institutional investors to invest under the QFII, RQFII and QDII schemes.
The Greater Bay Area (GBA) comprises of 3 territories of China – Guangdong (includes Shenzhen, Guangzhou), Hong Kong and Macao. In the 2020 report released by The Hong Kong Financial Services Development Council (FSDC), the Greater Bay Area has a total population of 71.2 million, GDP of $1.64 trillion and GDP per capita of $23,075.
Wealth Management Connect
The Wealth Management Connect was proposed to allow investors between Mainland China and Hong Kong to open banking & investment accounts, invest in stocks & bonds, purchase financial products and remit renminbi (RMB / CNY) & foreign currencies.
In May 2021, the Central Bank of China and China regulators have set a net $23.2 billion (CNY 150 billion) quota for the Wealth Management Connect in the Greater Bay Area. The net cashflow movement between Mainland China and Hong Kong cannot exceed $23.2 billion (CNY 150 billion) while the individual investor investment quota is set at $155,000 (CNY 1 million).
HSBC & Nielsen Survey
The online survey was conducted in Q4 2020 with 1,606 citizens living in the 9 mainland cities in the GBA. The survey covers who currently own or intend to take up financial products in Hong Kong in the next 12 months.
- 82% – To invest in Hong Kong via Wealth Management Connect
- 67% – Wealth Accumulation as key investment objective
- 44% – preparing for life in retirement
- 42% – Saving for children’s education
- 65% – Plan to diversify investment products in Hong Kong
Survey Results – Product Preference for those already Invested in Hong Kong:
- 38% – Funds
- 37% – Stocks
HSBC in Greater Bay Area
HSBC is the leading international bank in the Greater Bay Area with presence in all 21 prefecture level. HSBC is also one of the world’s largest wealth managers, with Asia accounting for nearly half of the Bank’s $1.6 trillion (March 2021)* wealth balances and 65% of the Group’s wealth revenues. Globally, HSBC has more than $2.9 trillion assets (March 2021).
Leveraging on its diversified wealth management solutions, leading digital services and excellent service teams, HSBC will actively assist customers in the GBA to fully capture opportunities brought about by Wealth Management Connect and the economic integration within the GBA.
* HSBC Wealth balances include Premier and Jade deposits and AUM, Global Private Banking client assets and Asset Management AUM.
HSBC Head of Greater Bay Area, Daniel Chan:
“The findings reveal that GBA Southbound investors have strong interest to participate in Wealth Management Connect. Guangdong is one of the most affluent regions in mainland China, with 290,000 families owning over RMB10 million in assets.
As a leading international asset and wealth management centre, Hong Kong is a key financial gateway for mainland Chinese investors to access broader range of wealth solutions and manage their global investments.
With Wealth Management Connect, Hong Kong’s financial institutions can help GBA Southbound investors allocate their assets globally, thereby capturing new wealth of opportunities in international markets.”
About the HSBC & Nielsen Survey:
An online survey by HSBC and the Nielsen Company (Hong Kong) was conducted in the fourth quarter of 2020. The survey aims to study the cross-boundary wealth management behaviour and preferences of GBA residents living in the nine mainland cities, including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing.
A total of 1,606 residents aged 18-54 participated in the survey, they all currently hold or intend to take up financial products in Hong Kong in the next 12 months. The survey also looks into interviewees’ preferences, usage and requirements with regard to Hong Kong’s financial products, as well as their criteria in selecting Hong Kong’s wealth management products.
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