DBS Bank (Hong Kong) and the Postal Savings Bank of China (PSBC) have tied up to offer services under the new Wealth Management Connect program allowing cross-border investments in the Greater Bay Area, the banks announced Tuesday in a press release.
The program, launched in September and called the Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) allows mutual market access programs between capital markets in Hong Kong, Macau and the mainland. Under the program, eligible residents of those areas can invest in wealth management products distributed by banks in each other’s markets, with individual retail investors able to open and operate accounts directly.
The Greater Bay Area (GBA) is the 12th largest economic entity globally, OCBC noted, with the region including nine high-growth southern Chinese cities as well as Hong Kong and Macau.
DBS Bank (Hong Kong) and PSBC were confirmed Tuesday by the Hong Kong Monetary Authority and the People’s Bank of China, respectively, to participate in the Connect program, the statement said.
DBS Bank (Hong Kong), DBS’ largest franchise outside its Singapore headquarters, will be able to offer comprehensive wealth management services for customers located in the GBA, the statement said.
PSCB, one of the largest state-owned banks in China, is a retail bank targeting “Sannong customers,” or customers in agriculture, rural areas and farmers, as well as urban and rural residents, and small-to-medium sized enterprises, the statement said.
Sebastian Paredes, CEO of DBS Bank (Hong Kong) said the tie-up would develop “a unique wealth management proposition for GBA customers.”
The strategic partnership “allows us to grow our GBA franchise, especially through PSBC’s extensive network in Guangdong. We expect to combine DBS’ strong Asian connectivity and digital capabilities to provide customers with a more diversified and holistic range of investment choices to achieve their financial goals,” Paredes said in the statement.
A spokesperson for PSCB said the Connect program “opens up a broader asset allocation market and brings in a new wave of business growth to the region’s banking and finance industry … Both banks will jointly provide more unique investment products for individual investors in GBA, contributing to the development of financial markets in the region.”
PSCB, which is listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange, has around 40,000 outlets, with services covering more than 600 million personal customers, the statement said. The China-based bank has both directly operated outlets and agency outlets.