Singapore Banks Joins China’s Wealth Management Connect
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DBS and OCBC have announced partnerships as part of the cross-border wealth management scheme between Hong Kong and China.
DBS Bank (Hong Kong) will be working with the Postal Savings Bank of China (PSBC), while OCBC Wing Hang Bank, OCBC’s Hong Kong subsidiary has tied up with China’s Ping An Bank to provide wealth-management services in the Greater Bay Area under the Wealth Management Connect scheme.
The link, which was announced in September, residents of special administrative regions Hong Kong and Macau will be allowed to buy investment products from the remaining nine Greater Bay Area cities, and vice-versa.
A total of 300 billion yuan ($46.5 billion) has been set as the aggregate quota for the two-way channel – 150 billion yuan each – with a limit of 1 million yuan per individual investor.
DBS Hong Kong is the group’s largest franchise outside Singapore, while PSBC is one of the largest state-owned banks in China, targeting agriculture, rural areas and farmers, urban and rural residents, as well as small and medium-sized enterprises.
Greater China is the second-largest market for OCBC after Singapore, while Ping An is among the top banks in China.
However, DBS is currently only allowed to sell products via the southbound route, while OCBC can provide two-way services under the scheme.
Questions & Answers
Q.What is the total financial limit set for the two-way Wealth Management Connect scheme?
What is the total financial limit set for the two-way Wealth Management Connect scheme?
The aggregate quota for the scheme is 300 billion yuan, which is equivalent to $46.5 billion. This amount is split equally, with 150 billion yuan allocated to each direction of the channel.
Q.Which specific banks are involved in the new cross-border wealth management partnerships?
Which specific banks are involved in the new cross-border wealth management partnerships?
DBS Bank (Hong Kong) has partnered with Postal Savings Bank of China (PSBC). OCBC Wing Hang Bank, a subsidiary of OCBC, has tied up with China's Ping An Bank for these services.
Q.What is the difference in service offering between DBS and OCBC under this scheme?
What is the difference in service offering between DBS and OCBC under this scheme?
DBS is currently only permitted to sell products via the southbound route of the scheme. In contrast, OCBC has been approved to provide two-way services, covering both southbound and northbound channels.
Q.Where can residents from Hong Kong and Macau buy investment products through this scheme?
Where can residents from Hong Kong and Macau buy investment products through this scheme?
Residents of Hong Kong and Macau are allowed to buy investment products from the remaining nine cities within the Greater Bay Area. The scheme also permits the reverse, for residents in those cities to buy products from Hong Kong and Macau.
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