By JIANG XUEQING, ZHOU LANXU and ZHANG CHENXU |
China Daily |
As Chinese mainland and Hong Kong authorities recently introduced new rules to regulate cross-border investment activities, market demand for compliant investment channels such as Stock Connect, the Qualified Domestic Institutional Investor program and the Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area is expected to grow significantly.
Wu Zewei, a special researcher at Jiangsu Su Merchants Bank, said that following the introduction of the new regulations, compliant Cross-boundary Wealth Management Connect Scheme channels may attract more investors as the regulatory environment becomes more stringent. In the medium to long term, the new measures explicitly eliminate unauthorized cross-border business activities conducted by offshore institutions, prompting mainland investors to seek legitimate alternatives.
On May 22, eight mainland government departments — led by the China Securities Regulatory Commission — issued an implementation plan to eradicate illegal cross-border securities, futures and fund business activities within two years.
