Chinese financial regulators achieved a consensus on jointly supervising wealth management products in Guangdong, Hong Kong and Macao, with a pilot program which allows residents to conduct cross-boundary investments in such financial instruments, according to a statement released on Friday.
The People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange, the Hong Kong Monetary Authority, Securities and Futures Commission of Hong Kong and Monetary Authority of Macao have agreed on the principles of supervisory cooperation under the so-called cross-boundary Wealth Management Connect, the PBOC said in a statement published on its website Friday.
They jointly signed a memorandum of understanding on the launch of the pilot scheme in the Guangdong-Hong Kong-Macao Greater Bay Area.
By signing the MoU, authorities in the three places aim to establish sound supervisory cooperation arrangements and liaison mechanisms. This will lay a good foundation for the smooth operation of the scheme and the protection of investors' interests, the statement read.
The signing of the MoU is of great significance to the implementation of China's strategic plan for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, which will help strengthen regulatory cooperation under the scheme and facilitate financial cooperation in the three places.
The HKMA also posted a statement on Friday, saying it will continue to work with the relevant authorities to step up preparations for the cross-boundary Wealth Management Connect and keep the industry engaged, with a view to launching the scheme early.