Four in five mainland investors in the Greater Bay Area (GBA) plan to invest in Hong Kong via the upcoming Wealth Management Connect. According to a survey by HSBC and the Nielsen Company (Hong Kong), about two-thirds of respondents are optimistic about Hong Kong’s market outlook and 70% of them intend to increase their share of assets in the territory.
The online survey was conducted in the fourth quarter of 2020, covering a total of 1,606 citizens living in the nine mainland cities comprising the GBA, who currently own or intend to take up financial products in Hong Kong in the next 12 months.
“Guangdong is one of the most affluent regions in mainland China, with 290,000 families owning over 10 million yuan in assets,” says Daniel Chan, head of Greater Bay Area at HSBC. “As a leading international asset and wealth management centre, Hong Kong is a key financial gateway for mainland Chinese investors to access broader range of wealth solutions and manage their global investments. With Wealth Management Connect, Hong Kong’s financial institutions can help GBA southbound investors allocate their assets globally, thereby capturing new wealth of opportunities in international markets.”
The survey also shows that 67% of the respondents consider wealth accumulation as their key investment objective, followed by preparing for life in retirement (44%) and saving for their children’s education (42%). For those already invested in Hong Kong, funds (38%) and stocks (37%) are the most popular products.
A majority of respondents (65%) plan to diversify their investment products in Hong Kong, and almost everyone who is aware of the concept of fintech and ESG finds it appealing.
A combined quota of 150 billion yuan (US$23 billion) has been set for the southbound and northbound movements of funds under the Wealth Management Connect, according to draft guidelines released by Chinese regulators on May 6. The rules will take effect after 30 days.