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.
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. “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.
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