(ATF) China plans to make it easier for wealthy residents in Hong Kong and the rest of southern China to invest either side of the border.
Officials will initiate a pilot programme to facilitate cross-border purchase of wealth management products (WMP) by residents in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA), the central bank said Monday.
Chinese mainland residents in the region will be allowed to open special investment accounts with banks in Hong Kong and Macau to buy their qualified WMPs, while residents in Hong Kong and Macao can buy similar products sold by mainland banks, the People's Bank of China (PBoC) said in an online statement.
According to the statement, cross-border capital flows under the programme will be capped, while individual investors will be granted a quota on their WMP investments.
The programme is expected to support the development of the GBA and will be conducive to promoting the opening of its financial market to the outside world, the statement added.
The launch date and implementation details of the programme will be announced through separate notices, the central bank said.