Special interviews
Written by: Hu Xueneng
2021-05-17 09:00
Last update date: 2021-05-17 14:25
The People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission jointly issued the "Guangdong-Hong Kong-Macao Greater Bay Area "Cross-border Wealth Management" Business Pilot Implementation Rules (Consultation Draft)" (hereinafter referred to as the "Comment Draft"), showing that the northbound and southbound links The total amount of the pilot business is tentatively set at 150 billion yuan, and there is a personal quota of 1 million yuan.
In other words, about 150,000 people can participate in Licaitong on each side.
Ng Yangyu, head of wealth management and personal banking at HSBC in Hong Kong, said that the bank is ready in terms of manpower, facilities, systems, products and services. When Licaitong implements the opening rules and timetable, it can be put into service immediately. She expects Nanxiangtong’s 150,000 quota will soon be fully booked after the launch of Licaitong. It is hoped that the bank’s Nanxiangtong business can achieve market share within the top three.
According to the "Draft Opinions", mainland investors who wish to carry out Southbound Link must meet the requirements including having household registrations in 9 cities in the Guangdong-Hong Kong-Macao Greater Bay Area, having more than two years of investment experience, and meeting the requirements for the monthly end-of-month household financial net assets in the last 3 months. RMB 1 million and so on.
Wu believes that Nanxiangtong’s policy is clearer, and it is believed that customers coming to Hong Kong will naturally look for larger local banks. With its international bank status, the bank is confident of this advantage and will provide more diversified products for customers to choose from.
Depending on policy coordination, other external factors, etc., she did not set a hard target for employees to achieve how much market share, "all in all, do everything", but hope that the market share can be in the top three in terms of customers and asset management scale. Inside.
The total amount of Northbound Link and Southbound Link business pilots is tentatively set at 150 billion yuan each, and there is a personal quota of 1 million yuan.
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She continued that customers in Greater China are generally more aggressive in risk appetite. Although the official implementation of Licaitong is expected to sell low-risk products, after all, this is a legal way to invest in international assets across borders, and mainlanders have always managed financial investments. They are all domestic assets. Given that the Licaitong limit is not high, it is believed that Nanxiangtong will soon be full, and the bank’s low-risk products are expected to include funds, bonds, etc., as well as some multi-asset funds with better sales. These funds may contain a lower proportion of stock elements. It is believed that the bank can provide a more diversified product selection in the initial stage of the launch of Licaitong.
As for the "Opinion Draft" regarding the account opening arrangements of Nanxiangtong, it is mentioned that "Mainland cooperative banks can represent Hong Kong and Macau sales banks for account opening witness, and provide qualified investors in the Mainland with Nanxiangtong investment account witness account opening service", which means Nanxiangtong Investment Alternatively, it may be possible to do remotely without having to visit Hong Kong to open an account in person.
Wu said that he still needs to know the details from the supervisory authority, but believes that if the supervisory authority's policies increase profitability, the bank will also strengthen the system simultaneously to achieve the capabilities set forth in the policy.
HSBC revealed that it will add 300 to 400 wealth-related professionals in Hong Kong this year.
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HSBC Hong Kong WPB first quarter AUM rose 30% year-on-year
Regarding the bank’s Hong Kong Wealth and Personal Banking (WPB) business, Wu said that the first quarter of this year had a good year-on-year performance. The total number of customers increased by 2% year-on-year. High-end customers (including HSBC Shangyu and WPB) Wealth Management Excellence) increased by 5%, overall asset management scale (AUM) increased by 30%, net new funds increased by 60%, and Hong Kong wealth business income increased by 60%.
HSBC announced earlier that the bank’s wealth management and personal banking plans to recruit more than 1,000 wealth management professionals in Asia this year. Wu pointed out that as part of the plan, Hong Kong will add 300 to 400 wealth business-related professionals this year. At present, a quarter of the target has been hired. The vision is that in 5 years, the profit of Hong Kong's high-net-worth clients will nearly double.
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Licaitong HSBC