China unveils wealth management scheme for Hong Kong, Macau and mainland

China unveiled on Monday a long-anticipated scheme linking up investment in wealth management products in Hong Kong, Macau and neighbouring mainland Chinese cities.

The "Wealth Management Connect" pilot scheme will allow individuals in Hong Kong, Macau and a group of nine cities in mainland China's southern Guangdong province, which together form the "Greater Bay Area", to buy such products in each other's markets.

Mainland China has strict capital controls, while Hong Kong and Macau do not. China will set investment quotas for the scheme that will be adjusted based on macro-prudential factors, according to a joint statement issued by the People's Bank of China, the Hong Kong Monetary Authority and the Monetary Authority of Macao on Monday.

Cross-boundary remittances in the scheme will be conducted in yuan and currency conversions related to the scheme will be conducted offshore, the statement said. The official launch date for the scheme will be announced later, it said.