Policy Background

To further facilitate Hong Kong residents to develop, work and reside in the Mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”), as well as strengthen the convenient flow of people, goods and funds within the GBA, the Leading Group for Development of the Guangdong-Hong Kong-Macao Greater Bay Area, following its plenary meeting on 6 November 2019, announced a series of measures, including exploring the establishment of a cross-boundary wealth management connect scheme (“Cross-boundary WMC”).

On 29 June 2020, the People’s Bank of China (“PBoC”), the Hong Kong Monetary Authority (“HKMA”) and the Monetary Authority of Macao jointly announced the framework for the pilot Cross-boundary WMC in the GBA. On 29 June 2020, Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong- Macao Greater Bay Area is officially promulgated.

In January 2024, enhancement measures for the Cross-boundary WMC were announced to refine the eligibility criteria of Mainland investors, expand the scope of participating institutions to include eligible securities firms, expand the scope of eligible products, increase the individual investor quota and further enhance the promotion and sales arrangements.

Introduction

The Cross-boundary WMC consists of the Southbound Scheme and the Northbound Scheme:

•　The Southbound Scheme refers to eligible residents in the Mainland GBA cities investing in wealth management products distributed by eligible financial institutions (banks and/or securities firms) in Hong Kong and Macao via designated channels.

•　 The Northbound Scheme refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by eligible Mainland financial institutions (banks and/or securities firms) via designated channels.

Cross-boundary renminbi fund flows are subject to closed-loop and quota management.

The Cross-boundary WMC creates new business opportunities for the financial industries in the three places, and facilitates cross-boundary investment with more options of wealth management products provided to the GBA residents, thereby further promoting the cross-boundary circulation and use of renminbi.

Further information is available on the website of the Hong Kong Monetary Authority：https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/wealth-management-connect/

China Everbright Bank Hong Kong Branch (“CEBHK”) participated WMC Northbound Scheme

CEBHK Private Bank is the offshore flagship for China Everbright Bank overseas branch. CEBHK has spared no effort to align with China Everbright Group's and CEB's strategic roadmap and development blueprint of building a "First-Class Wealth Management Bank". Powered by the extensive mainland branch network of CEB in the GBA, CEBHK partnered with CEB Guangzhou Branch together actively participated in the WMC Northbound Scheme.

Eligibility for Cross-boundary WMC Northbound Service

√　CEBHK Private Banking Customer

√　Hong Kong ID card holders (permanent and non-permanent)

√　Not assessed as vulnerable customers for all investment products

×　Not as joint-name or corporate customers and should not authorize a third party to operate the account.

Aggregate quota and Individual Investor Quota (calculated on a net basis)

•　Aggregate quota: the Northbound and Southbound Schemes are each subject to a quota of RMB 150 billion, shared by Hong Kong and Macao.

•　Individual Investor Quota: each investor is subject to a quota of RMB 3 million. If an investor simultaneously selects both a bank and a securities firm for investment under Cross-boundary WMC, the individual investor quota allocated between the bank and the securities firm will each be RMB 1.5 million.

Process Flow

1.Open a new bank account or designate an existing bank account with cross-boundary remittance function at CEBHK to serve as a “dedicated remittance account”.

2.Open an account with investment function at CEB Guangzhou Branch to serve as “dedicated investment account”. If an account with investment function is already maintained with CEB Guangzhou Branch, the account can be designated as the “dedicated investment account” for the Northbound Scheme.

3.Closed-loop cross-boundary remittance: The investor’s dedicated remittance account with his/her dedicated investment account maintained with the Mainland partner bank to form a one-to-one matching, thereby ensuring a closed-loop funds flow. Funds remitted from an investor’s dedicated remittance account to the Mainland will only be credited to the dedicated investment account with which such dedicated remittance account is paired, and funds remitted from the Mainland can only be from the paired dedicated investment account. Cross-boundary remittance should be conducted in RMB.

Eligible Products

Investment products distributed by mainland institutions, including:

•The following products issued by Mainland wealth management companies, with risk rating of “R1” to “R3”:

　　–Public fixed income wealth management products (which primarily invest in bonds and deposits)

　　–Public equity wealth management products (which primarily invest in equities)

•Public securities investment funds with risk rating of “R1” to “R4” (excluding commodity futures funds)

Deposit products offered by Mainland banks

•Renminbi deposit products

Contact Us

Address: 23/F Everbright Centre, 108 Gloucester Road, Wan Chai, Hong Kong

Opening Hours: Monday to Friday 9:00AM - 6:00PM

(Closed on Saturdays & Sundays and General Holidays)

Customer Service Hotline: (852) 3123 9800

Fax：      (852) 2250 3988

Email：     wm-cs@cebbank.com.hk

When you are in Mainland China, please call our China Toll Free Number: 400 841 2038

China Everbright Bank Profile

China Everbright Bank (CEB), established in August 1992 and headquartered in Beijing, is a national joint-stock commercial bank approved by the State Council of China and the People’s Bank of China. CEB was listed on the Shanghai Stock Exchange (SSE) in August 2010 and the Hong Kong Exchanges and Clearing Limited (HKEX) in December 2013.

As at the end of June 2021, CEB had established 1,299 branches and outlets nationwide, covering all provincial administrative regions and extending its business reach to 149 economic center cities across the country. Closely following up with the Belt and Road Initiative and expanding its international presence at a faster pace, CEB put Hong Kong Branch, CEB International Investment Corporation Limited, Seoul Branch, China Everbright Bank (Europe) S.A., Luxembourg Branch，Sydney Branch and Tokyo Representative Office into operation successively. The application for the establishment of Macau branch was approved by the China Banking and Insurance Regulatory Commission.

CEB was ranked 32nd in the “Top 1,000 World Banks” by The Banker in 2021, and 25th in the Brand Finance Banking 500, 2021.

Important point(s) to note

1.The content of this webpage is for general information and reference only. It is not, and is not intended to be, a solicitation, recommendation, or advice on, or offer of, any investment services or products. Investors should note that all investments involve risks (including the possibility of loss of the capital invested). Prices or value of investment products may go up as well as down and past performance is not indicative of future performance. Investors should not only base on this material alone to make investment decisions, but should read the relevant offering documents of the investment products (including the full text of the risk factors stated therein) and risk disclosure statements of the relevant investment products in detail before making any investment decision. Investors should carefully consider whether an investment is suitable for them in view of their own investment objectives, investment experience, investment tenor, financial situation, risk tolerance abilities, tax implications and other needs, etc., and should understand the nature, terms and risks of the investment products. Investors should obtain independent professional advice if they have concerns about their investment. The content of this webpage has not been reviewed by any regulatory authority in Hong Kong.

2.RMB currency risk

RMB is subject to foreign exchange control and restrictions by the Mainland Chinese central government. There may be additional rules, regulations and restrictions under contemplation or to be issued by any authorities in Mainland China that may be relevant to RMB conversion. The Customer should take reasonable steps to check for updates and details before giving instructions for RMB conversion. The exchange rate of RMB may vary from time to time. There is no guarantee that RMB will not depreciate. The exchange rate of RMB traded outside Mainland China (“Offshore RMB”) will be affected by, amongst other things, foreign exchange control imposed by the Mainland Chinese central government from time to time. The Customer will incur currency conversion costs (being the spread between the purchase and sale of Offshore RMB) and be subject to exchange rate fluctuation risks in any such currency conversion.

3.Foreign exchange risk

If the eligible products that are traded by the Customer are not denominated in RMB, the Customer may have to convert RMB into the relevant foreign currency when the Customer invests in that foreign currency denominated eligible product. The Customer will be exposed to exchange rate risk. Besides, if the relevant foreign currency is subject to exchange control, it is possible that the Customer may not receive the relevant foreign currency upon redemption or sale of the relevant foreign currency denominated eligible products. The relevant foreign currency denominated eligible products may also be subject to liquidity risk, credit and insolvency risks of the product issuers.

4.Investment funds risk

Investors should note that all investments involve risks (including the possibility of loss of the capital invested). Prices or value of investment funds units may go up as well as down and past performance is not indicative of future performance. Before making any investment decisions, investors should read the relevant offering documents of the investment funds (including the full text of the risk factors stated therein) and risk disclosure statements of the relevant investment funds in detail.

5.Risk warning of wealth management products

Wealth management products do not guarantee principal and income, and investors may suffer corresponding losses due to market changes. Investment in wealth management products may involve the following risks, including but not limited to policy risks, credit risks, market risks, liquidity risks, management risks, operational risks, minimum scale risks, redemption delay risks, early termination risks, information transmission risks, distribution risks , special investment risks of underlying assets, associated connected transaction risks and other risks.