Wealth Management Connect makes positive start as customers rush to open accounts, invest on both sides of the border
- Banks receive upbeat response from customers in Hong Kong and the mainland on the first day of trading of the new connect scheme
- Bank of China (HK) has assigned 3,500 staff to focus on the connect scheme, while HSBC plans to dedicate a staff of 5,000
HSBC, Standard Chartered, Bank of China (Hong Kong) (BOCHK) and 10 other lenders contacted by the South China Morning Post, said the response from customers to open bank accounts was positive, with many of them buying investment products across the border.
BOCHK said the first customers opened an account in Hong Kong and Qianhai, Shenzhen, right after they opened for business at 9am. The account opening and product purchase only took them 20 minutes to complete, it said.
One of the basic requirements is that all banks have customers to be present at a branch to open a wealth management account, following which they can use the respective bank’s mobile phone app to invest and transfer funds.
Chow noted that mainland customers preferred mixed-asset funds tracking bonds and stocks, while Hong Kong investors like yuan bonds and other yuan products sold in the mainland.
“Our survey has indicated over 80 per cent of Greater Bay Area citizens like to invest in the connect scheme,” said Maggie Ng, head of wealth and personal banking at HSBC Hong Kong. “We are positive that the scheme will boost our wealth management business.”
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Other lenders including Standard Chartered, China Construction Bank Asia, ICBC Asia, CMB Wing Lung, DBS and Dah Sing Bank also said that they had opened accounts for customers in the southbound and northbound routes.
“We have offered over 100 investment products for customers including funds, forex and other investment products,” said Lay Choo Ong, head of consumer, private and business banking of Hong Kong office of Standard Chartered. The bank said it will introduce more products for the Greater Bay Area customers as the need arises.
Lawrence Lam, consumer business manager at Citibank Hong Kong, said the Wealth Management Connect will open up unprecedented market opportunities for the financial industry.
“Hong Kong is one of the wealth hubs in the region for Citi, and we are committed to investing in our wealth management franchise in Hong Kong with the GBA being a key strategic market that will fuel future growth,” he said.
