Wealth Management Connect: A clearer picture of the Mainland market

May 2021

Wealth Management Connect: A clearer picture of the Mainland market

On 6 May, the Guangzhou and Shenzhen branches of the People’s Bank of China, the CBIRC and the CSRC issued new Detailed Rules on Wealth Management Connect, with a view to soliciting opinions by 21 May.

These proposed rules offer us the clearest picture to date of how banks, wealth management companies and fund managers will be able to operate within the GBA. They confirm that the pilot quota will be RMB 150bn for both the Northbound and Southbound legs, with an individual investment quota of RMB 1m. The rules also specify the detailed conditions that must be met for investors to participate in Wealth Management Connect.

In this publication, we offer a breakdown of the main regulatory features of Wealth Management Connect. We then outline the preparations that banks, wealth management companies and fund managers should make so that they can take advantage of the opportunities that emerge from this scheme. Areas covered include setting internal controls, product due diligence, meeting requisite regulatory requirements, training of staff, assessing existing infrastructure and enhancing digital operations.

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