The Cross-boundary Wealth Management Connect Pilot Scheme was officially put into operation, with the first batch of banks participating in the program in the Chinese mainland, Hong Kong and Macao launching Cross-boundary WMC services on Oct 19.

An hour after the launch, with the help of the Cross-border Interbank Payment System, mainland banks had credited 41 investments made by Hong Kong and Macao retail investors via the Northbound Scheme of the Cross-boundary WMC, which refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by mainland banks via designated channels. The investments totaled about 2.5 million yuan ($391,027), according to preliminary statistics from the People's Bank of China, the central bank.

Meanwhile, mainland banks helped lenders in Hong Kong and Macao open 115 Southbound Scheme investment accounts for mainland individual investors in the Guangdong-Hong Kong-Macao Greater Bay Area, remitting eight investment funds totaling 398,000 yuan.

The Southbound Scheme refers to eligible residents in the mainland's GBA cities investing in wealth management products distributed by banks in Hong Kong and Macao via designated channels, according to the Hong Kong Monetary Authority.

"Considering that it will be the first time for retail investors to conduct cross-boundary investments, we will closely monitor the operation of Cross-boundary WMC and step up investor education and investor protection work together with the industry," said Chief Executive of the HKMA Eddie Yue Waiman in a statement.

Bank of China (Hong Kong) successfully opened the first account under the Northbound Scheme and the Southbound Scheme on Oct 19. The bank has set up a specialist team for Cross-Boundary WMC services, with over 3,500 staff involved in Hong Kong.

On the same day, Hang Seng Bank (China) Ltd announced it has jointly launched Cross-Boundary WMC services with its parent bank Hang Seng Bank Ltd to provide quality and comprehensive cross-border financial services to customers in the GBA.

"The cross-border link opened up a new channel for individuals to invest across borders and will facilitate the integration of financial markets in the Greater Bay Area," said Judy Qin, Hang Seng Bank (China) Ltd's deputy chief executive.

Citi also announced a strategic partnership with China Guangfa Bank to offer cross-border wealth management services to clients in the GBA under the Cross-boundary WMC.

"WMC opens up unprecedented market opportunities for the financial industry in this area as consumer wealth continues to grow. Hong Kong is one of the wealth hubs in the region for Citi, and we are committed to investing in our wealth management franchise in Hong Kong with the GBA being a key strategic market that will fuel future growth," said Lawrence Lam, consumer business manager for Citi Hong Kong.

David Liao, co-chief executive of Hongkong and Shanghai Banking Corp Ltd, said: "The rollout of Wealth Management Connect underlines the Chinese mainland's continuing commitment to opening up its financial markets. These initiatives promote financial connectivity in the GBA, create deeper investment markets and accelerate RMB internationalization."

For mainland investors, wealth management products distributed by banks in Hong Kong will help them with global asset allocation. For Hong Kong and Macao residents, RMB assets have become increasingly attractive thanks to the mainland's resilient economic growth and the relatively steady value of the yuan, said Richard Li, executive vice-president and chief client officer of HSBC Bank (China) Co Ltd.

The implementation of the Cross-boundary WMC indicates a major breakthrough in the interconnectivity of financial markets. It is also a crucial step toward promoting convenience in individual cross-border investments, said Jessie Li, head of consumer, private and business banking at Standard Chartered China.

"Under China's dual-circulation development paradigm, GBA client demands for quality investment opportunities and interconnection between the mainland and major Asian markets have become more prominent. We look forward to taking this pilot program as a great opportunity to promote cross-boundary business innovation in the GBA," she said.