The Guangdong-Hong Kong-Macao Greater Bay Area will pilot cross-border financial services

The People's Bank of China, the Hong Kong Monetary Authority and the Macao Monetary Authority decided Wednesday to launch a pilot program to facilitate cross-border investment by individual residents in the Guangdong-Hong Kong-Macao Greater Bay Area. The official launch time and implementation rules of the cross-border Finance Link will be separately stipulated.

"Cross-border Financial Management Connect" refers to the financial management products sold by Banks of Guangdong, Hong Kong, Macao and Greater Bay Area by individual residents of the region. They can be divided into "Southbound connect" and "Northbound connect" according to the identity of the buyer.

To be more specific, "South to East" means that mainland residents in the Greater Bay Area of Guangdong, Hong Kong and Macao open special investment accounts in Banks of Hong Kong and Macao to purchase eligible investment products sold by Banks of Hong Kong and Macao. The "North To Link" means that residents of Hong Kong and Macao open special investment accounts with mainland Banks in the Greater Bay Area of Guangdong, Hong Kong and Macao to purchase eligible wealth management products sold by mainland Banks.

It is learnt that the cross-border Financial Planner follows the relevant laws and regulations on personal financial products management of the three places and respects international practices. The qualifications, investment mode, investment product range, protection of investors' rights and interests and settlement of disputes for the "Northbound" and "Southbound" links are determined through consultation by the People's Bank of China, the China Insurance Regulatory Commission, the China Securities Regulatory Commission, the Safe, the Hong Kong Monetary Authority, the Hong Kong Securities Regulatory Commission and the Macao Monetary Authority. Northbound and Southbound business funds realize closed-loop transfer and closed management through account-by-account binding, and the scope of use is limited to the purchase of qualified investment products. The fund transfer shall be in RMB cross-border settlement, and the capital exchange shall be completed in the offshore market. The "northbound" and "southbound" cross-border capital flows shall be managed by the total quota and individual investor quota, and the total quota shall be dynamically adjusted through the macro-prudential coefficient.