Source: China Net Finance On April 23, the Guangdong Branch of the People\’s Bank of China announced the first report card after the launch of \”Cross-border Financial Management Connect 2.0\”.
Overall, in March, 24,000 new individual investors participated in the \”Cross-border Wealth Management Connect\” in the Guangdong-Hong Kong-Macao Greater Bay Area, a month-on-month increase of 9.16 times, setting a new high in the number of new account openings in a single month.
Among them, mainland tourists surged by 23,000, an increase of nearly 12 times from the previous month.
Mainland investors increased 12 times in the first month On February 26, the new version of “Cross-border Wealth Management Connect” was officially implemented.
Compared with the previous version 1.0, the new version of \”Cross-border Wealth Management Connect\” not only reduces investor access conditions and increases individual investor quotas, but also broadens the scope of business pilots to better meet the diversified investment needs of residents in the Greater Bay Area.
Pilot banks are actively launching competitive products, and short-term U.S. dollar fixed deposit products of up to 10% abound.
It is said that many banks have already scheduled account opening appointments into July or even August.
According to the latest data from the Guangdong Branch of the People\’s Bank of China, there were 24,288 new individual investors in the \”Cross-border Financial Management Connect\” in March, a 9.16-fold increase from the previous month; 20,574 cross-border transfers of funds were involved, with an amount of 13.106 billion yuan, on a monthly basis Increases of 5.09 times and 7.84 times respectively.
Among them, 23,237 new individual investors from the mainland participated in the \”Southbound Link\” in March, a month-on-month increase of 11.78 times, and accounted for 96% of the overall new number of people.
The cross-border remittances involved amounted to 13.088 billion yuan, soaring nearly 7.95 times month-on-month, reaching a new high.
As of the end of March 2024, there were 97,700 individual investors in the Guangdong-Hong Kong-Macao Greater Bay Area participating in the \”Cross-border Wealth Management Connect\”, including 47,400 Hong Kong and Macao investors and 50,300 mainland investors, involving 69,800 cross-border transfers of related funds. , amounting to 28.389 billion yuan.
98% is deposit business. Data shows that as of the end of March 2024, the market value balance of investment products purchased by individual investors participating in the \”Cross-border Financial Management Connect\” was 16.441 billion yuan.
Among them, under the Northbound Stock Connect, the market value balance of mainland investment products held by Hong Kong and Macao individual investors is 201 million yuan, including 122 million yuan in wealth management products and 79 million yuan in fund products; under the Southbound Stock Connect, the market value balance of mainland investment products held by mainland individual investors is 201 million yuan. The product market value balance is 16.24 billion yuan, including investment funds of 224 million yuan, bonds of 25 million yuan, and deposits of 15.991 billion yuan.
In other words, 98% of the products invested by mainland investors are deposit businesses.
It is worth noting that among the nine mainland cities in the Greater Bay Area, Shenzhen, Guangzhou, Zhuhai, and Foshan accounted for 83.84% of the remittance amount of the \”Cross-border Wealth Management Connect\” business.
As the \”Cross-border Wealth Management Connect\” business soared, as of April 22, the net outflow from the southbound link was 31.27 billion yuan, and the used quota accounted for 20.85% of the total quota; the net inflow from the northbound link was more than 241 million yuan, and the used quota accounted for 20.85% of the total quota. 0.16% of the total amount.
Some banks have raised the interest rate on RMB deposits to 18.1%. The \”Cross-border Wealth Management Connect\” business has successfully attracted the attention of mainland investors.
Entering April, many banks have lowered short-term U.S. dollar fixed deposit rates.
For example, Standard Chartered Bank lowered its previous one-month U.S. dollar deposit interest rate from 10% to 8%.
However, in order to attract mainland high-net-worth individuals, Standard Chartered recently launched two fixed deposit products, 7-day and 14-day, for priority private financial management and platinum foreign exchange members.
Among them, the annual interest rate of 7-day short-term time deposits for Hong Kong dollars and US dollars is 10%, but for British pounds, Australian dollars, etc., it is as high as 13.8%.
It is understood that the customer qualification requirements for \”Priority Private Financial Management\” are: the daily average balance of the customer\’s total monthly deposits and investments in Standard Chartered Bank reaches and continues to be maintained at RMB 7 million (or equivalent foreign currency) or above.
In addition to offline banks, there are digital banks in Hong Kong that have increased the RMB fixed deposit interest rate to 18.1%.
According to the activity introduction of Zhongan Bank, users only need to complete the tasks of \”Exchange RMB\” and \”Exchange USD\” to get a 7-day RMB fixed deposit interest rate coupon with an annual interest rate of 18.1% and a 1-month USD interest rate with an annual interest rate of 6.5%. Fixed deposit interest rate coupons.
Finally, we also want to remind you of the risks.
Some experts said that cross-border deposits need to pay attention to exchange rate risks to avoid losses due to exchange rate fluctuations.
Dong Ximiao, chief researcher of the China Merchants Union and part-time researcher at the Institute of Finance at Fudan University, said that currently, the financial markets, financial systems and financial products of the mainland, Hong Kong and Macao are quite different.
Investors, whether from the Mainland or Hong Kong and Macao, should learn more about the financial markets, systems and products of the Mainland, Hong Kong and Macao, and on this basis make rational investments based on their own investment capabilities, needs and risk preferences.
Mainland investors, in particular, must fully understand and anticipate the systems and risks of the financial markets in Hong Kong and Macao.
At the same time, financial management departments also need to adhere to the qualified investor mechanism arrangements and properly protect the legitimate rights and interests of investors.
Some banks have made a big move: the interest rate on RMB deposits is 18.1%
On April 23, the Guangdong Branch of the People\’s Bank of China announced the first report card after the launch of \”Cross-border Wealth Management Connect 2.0\”.
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