Xu Zhengyu: Hong Kong has now become the world's largest cross-border wealth management center and will continue to deepen its connectivity with capital markets around the world.

On July 8, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, stated at a Legislative Council meeting that the Hong Kong government has been working closely with the financial industry to continuously improve financial infrastructure and ecosystem, enhance investment products and risk management tools, and deepen connectivity with capital markets around the world. According to a recent survey released by the Securities and Futures Commission, the total value of assets under management in Hong Kong is expected to increase by 20% to a historic high of HK$42.2 trillion in 2025, with net fund inflows increasing by 193% to HK$2.1 trillion. Hong Kong has now become the world's largest cross-border wealth management center, with the average scale of cross-border wealth managed expected to grow by 9% annually from 2025 to 2030, maintaining its position as the global leader. Hui introduced that the Hong Kong government is committed to optimizing the connectivity mechanisms with the mainland. The Mainland and Hong Kong Mutual Recognition of Funds (MRF) scheme, in effect since July 2015, allows Mainland and Hong Kong funds that meet certain conditions to be easily recognized in each other's market and sold to retail investors. As of January 1, 2025, the regulators in both regions have implemented optimization measures, including relaxing the sales ratios of MRF funds in the host market and allowing the transfer of investment management functions of Hong Kong MRF funds to overseas asset management institutions within the same group. These measures have enhanced the flexibility and scale of the scheme, with 85 funds recognized by both regulators as of the end of May 2026. In 2025, Hong Kong MRF funds saw a net purchase of RMB 82.5 billion in the Mainland, an increase of 2.3 times compared to the previous year. In addition, the comprehensive fund platform established by the Hong Kong Stock Exchange has been well received by the industry since its launch. By the end of May 2026, the platform had attracted 55 financial institutions to participate, including fund companies, distributors, and registered agents. The platform is expected to launch "platform and agent services" in the second half of 2026 to expand its functions to cover agent services, payment, and settlement, in order to enhance market efficiency and reduce trading costs. Throughout the planning, preparation, and operation of the platform, the Hong Kong Stock Exchange will continue to maintain close communication with regulators and industry stakeholders to improve the efficiency of the platform and encourage broader industry participation. Hui pointed out that the "Wealth Management Connect" in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) provides residents of the GBA with a formal, direct, and convenient channel for cross-border investment in various types of wealth management products, marking a milestone in the financial development of the GBA. Regarding the mutual recognition of professional qualifications in the mainland's financial industry, in the securities and futures sector, the Securities and Futures Commission has implemented a mutual recognition arrangement with the China Securities Regulatory Commission, simplifying the procedures for securities licensing in the mainland and applying for futures or fund management qualifications. Professionals in Hong Kong holding relevant licenses only need to pass examinations on mainland laws and regulations without having to retake basic subjects. In the banking sector, the Hong Kong Institute of Bankers and the Bank Of China Business Association signed a cooperation agreement in 2009 on mutual recognition, which was further supplemented in 2010, 2015, and 2022 to enhance the arrangement. Under these cooperation agreements, financial practitioners from the mainland and Hong Kong can obtain "dual qualifications" (the mainland's "Personal Financial Professional Certificate (Basic)" and Hong Kong's "Certified Financial Planner"). Hong Kong will continue to work with mainland regulatory authorities to study optimization measures, explore channels for increasing the entry of Hong Kong professionals into the mainland market, and provide more flexible talent resources for the mainland and Hong Kong markets. He continued by stating that the "Wealth Management Connect" as an innovative financial cooperation measure in the GBA involves three different regulatory systems of the mainland, Hong Kong, and Macao, and is being piloted in a gradual manner. According to current regulations in the mainland, mainland securities firms can now collaborate with multiple Hong Kong securities firms to conduct cross-border wealth management business. With the announcement of the "Wealth Management Connect 2.0," it includes all Hong Kong registered, SFC-accredited, non-complex, and predominantly investing in Greater China stock funds (excluding single emerging market stock funds and high-yield bond funds), as well as other "low" to "medium-high" risk funds. and (three) "low" to "medium" risk and non-complex bonds. Since the optimization measures of the "Wealth Management Connect 2.0" were launched in February 2024, the number of mainland investors in Hong Kong wealth products has increased from approximately 25,000 to around 126,000. By the end of May 2026, there were over 181,000 individual investors participating in the Wealth Management Connect, with cross-border remittance amounts (including those in GBA) exceeding RMB 138 billion. The Hong Kong government and financial regulatory authorities will closely monitor market developments and the operation of the Wealth Management Connect, communicate closely with mainland regulatory authorities, review the implementation of the "Wealth Management Connect 2.0" regularly, and study further optimization measures in collaboration with mainland regulatory authorities.