The implementation details of the " Wealth Management Connect (WMC)" business pilot in the Guangdong-Hong Kong-Macao Bay Area may be officially implemented in July. The WMC business refers to the closed-loop fund pipeline established by the banking system in the Guangdong-Hong Kong-Macao Bay Area for local, Hong Kong and Macau investors. Cross-border investment in each other's bank sales of investment products or wealth management products.

The promotion of WMC business will provide new development opportunities for banks that meet the conditions. Although the annualized yield of domestic wealth management products has decreased, domestic wealth management products are more attractive compared with the asset management products in European and American markets under zero interest rate.

The total amount of WMC business pilot is temporarily set at RMB 150 billion. The investment limit for a single investor is RMB 1 million.

Banks with wealth management company licenses and WMC related business qualifications are expected to benefit from the policy dividends in both capital management and wealth management dimensions, and increase their revenue through wealth management product issuance and sales, customer asset allocation expansion, and customer base expansion, as well as enhance customer stickiness with more diversified product cross-selling.

For the vast market to be opened, domestic and foreign banks are actively preparing for the “war”. Many banks including Bank of Communications, ICBC, China Merchants Bank and Hang Seng Bank, together with their subsidiaries in Hong Kong, have indicated that they are ready for the WMC business.