The first batch of wealth management companies are trying out the "Southward Passage", diversifying cross-border investments to increase returns.

The policy dividend of expanding the scope of domestic investors in the bond southbound channel by regulatory authorities continues to be implemented. Industrial Bank Wealth Management, Bank of China Wealth Management, and China Merchants Bank Wealth Management are the first batch of wealth management companies to enter the pilot program. Many state-owned banks and joint-stock banks' wealth management companies are also actively applying to participate. Industry insiders believe that the southbound channel has significantly increased the quota for wealth management companies to participate in cross-border RMB investments. Wealth management companies can rely on offshore dim sum bonds and other assets to increase product returns. At the same time, this mechanism also establishes a channel for wealth management funds to connect with the offshore financing needs of the real economy.