The Chinese mainland, Hong Kong and Macao launched the first mutual market access mechanism for individual investors which facilitates the financial development and further opening-up of the nation.

On Sept 10, the online ceremony of Cross-boundary Wealth Management Connect in the Guangdong-Hong Kong-Macao Greater Bay Area was held simultaneously in the mainland, Hong Kong and Macao linked by webcast.

The plan enables residents in Hong Kong, Macao and nine cities in Guangdong province to carry out cross-boundary investment in wealth management products distributed by banks in the area. It is estimated banks will introduce related services in October or November at the earliest.

"Wealth Management Connect is a milestone in the financial development of the Greater Bay Area and an important measure that deepens and widens mutual access between the financial markets of the mainland and Hong Kong," said Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor.

Under the plan, there will be an aggregate quota of 150 billion yuan ($23.3 billion) in each direction and an individual investor quota of 1 million yuan.

The plan will cover relatively simple investment products with low to medium risk, and clients will initiate transaction instructions while banks will execute such instructions and respond to clients' enquiries. Structured products or derivatives will not be included at this stage.

Hong Kong or Macao investors have to open a designated remittance account at an eligible bank of their own choice in Hong Kong or Macao and a designated investment account with its mainland partner bank to invest onshore financial products.

For mainland customers, they have to open a designated remittance account at an eligible bank of their own choice in the mainland and a designated investment account with its Hong Kong or Macao partner bank to invest offshore. Both investment channels are conducted with a closed-loop currency conversion regime.

Hong Kong Financial Secretary Paul Chan Mo-po said: "Wealth Management Connect will expand the cross-boundary investment channel and asset allocation choices for residents in the area, and open up a broader market for the financial and relevant professional sectors, bringing enormous business opportunities."

The city's finance chief said the Wealth Management Connect will also attract more international financial institutions to have a foothold in Hong Kong to expand their mainland businesses, further reinforcing Hong Kong's role as an important gateway for capital flowing into and out of the mainland, as well as its position as the global offshore renminbi business hub and an international asset management center.