The Hong Kong government is investigating the possibility of including insurance goods on platforms for cross-border investing with mainland China.
According to Mr. Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, the action has been planned for when existing initiatives to construct after-sales support centers take root in the near future.
He said at the monthly Legislative Council financial affairs panel meeting that the insurance products could be included in the Wealth Management Connect program, which will be introduced in 2021, or in a separate Insurance Connect program, which would permit the cross-border sale of policies within the 11 cities in the Greater Bay Area. There hasn't been a choice made.
He said, "We are investigating the two options to determine which would be more favorable. The choice would be based on a discussion of regulations with regulators in the mainland of China, including the timeline.
The Wealth Management Connect, which celebrated its first birthday on October 19, enables commercial lenders in Hong Kong and Macau to market investment fund services to Bay Area residents through its partners in mainland banking.
According to Mr. Chan Kin-por, a politician with an insurance experience and a member of the Executive Council, the city's Cabinet, the government would like to include insurance products to the wealth management menu offered by these lenders.
Before the Shenzhen leg was added two years later, the first Connect program was launched in 2014, connecting the stock exchanges between Hong Kong and Shanghai. The Bond Connect that came after allowed mainland money to purchase bonds in Hong Kong in 2021 and allowed overseas investors to purchase yuan bonds in 2017. To commemorate the 25th anniversary of Hong Kong's transfer to mainland China, the ETF Connect is the most recent international program to be added to the mix in July.
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