Banks in Macau are readying to kick off sales of investments products to mainlanders under the Wealth Management Connect scheme launched last month.
Ten banks in Macau will look to sell investment products under the new cross-border scheme, according to the special administrative region’s (SAR) central bank in an «SCMP» report, with some looking to launch new services as soon as this month.
«The implementation of this two-way investment mechanism, on the one hand, will create more investment demand in Macau and promote the development of more diversified investment products by the Macau financial institutions, and on the other hand it will broaden the investment options of the Macau residents,» said the Autoridade Monetaria de Macau (AMCM).
«Meanwhile, it encourages banks to actively engage in product and service innovation, as well as to elevate the standard of modern financial services. The scheme will certainly bring greater room for growth in the local wealth management business, and help promote the development of modern financial services in Macau.»
GBA Links
Alongside Hong Kong, financial institutions in Macau will be able to sell investment products to customers based in the other nine Greater Bay Area cities in mainland China and vice-versa.
«For a long time, residents in the Greater Bay Area have had close business ties with Macau, and some of them have established deep relationships with the Macau banks,» AMCM said.
«These long-lasting relationships will encourage investors from the mainland to purchase investment products from these banks.»
Hub Ambitions?
Similar to other sectors in mainland China, Macau’s gaming industry – a key driver of its economy – has been facing a crackdown with authorities issuing a 45-day consultation period aimed at tightening supervision in areas such as the number of licenses and employee welfare.
More interestingly, Beijing reportedly directed state-owned banks and enterprises in late 2019 to help set up infrastructure in Macau for financial services to serve as a contingency plan in the event that conditions in Hong Kong worsen.
«The Wealth Management Connect scheme will encourage the Macau financial institutions to develop more diversified financial products and to promote the internationalization of the yuan,» Macau chief executive Ho Iat-seng previously said during the launch of the cross-border link last month.
