OCBC Bank’s Hong Kong subsidiary partners China’s Ping An Bank to provide two-way Wealth Management Connect services
OCBC Bank today announced that its wholly-owned Hong Kong subsidiary, OCBC Wing Hang Bank Limited, is partnering Ping An Bank on China’s Wealth Management Connect scheme and has launched two-way services relating to this.
Last month, Chinese and Hong Kong regulators had announced the roll-out of the cross-boundary scheme which will allow a two-way purchase of approved wealth management products across China’s Greater Bay (GBA) area. The GBA is a cluster of 11 high-growth cities in southern China which includes Hong Kong and Macau and is the 12th largest economic entity in the world.
Under the new scheme, residents in the nine Mainland China cities in the GBA such as Guangzhou, Shenzhen and Zhuhai can purchase wealth management products offered by providers in Hong Kong and Macau (south-bound scheme); while those in Hong Kong and Macau will also be able to buy products by providers based in the Mainland China cities (north-bound scheme).
The tie-up between OCBC Wing Hang and Ping An Bank will see both banks provide quality and diversified financial services to their GBA customers. Eligible Ping An customers can open investment accounts with OCBC Wing Hang and purchase qualified wealth management products covering global, Asia-Pacific, Mainland China and US markets. Eligible OCBC Wing Hang customers can do the same with Ping An Bank to purchase qualified wealth management products from Mainland China.
OCBC Bank’s Group Chief Executive Officer, Ms Helen Wong, said: “Asia is now the most exciting place to be for wealth management. The Greater Bay Area is a key strategic area of growth for us and we see a lot of potential for growth on all fronts, especially in wealth management.
“The Wealth Management Connect scheme will be a game-changer and opens up a whole new segment of customers for us. Our partnership with Ping An Bank, combined with our strong wealth management capabilities regionally, as well as our significant branch presence in the GBA, enables us to offer China customers a wealth of diversified investment opportunities through our twin hubs of Singapore and Hong Kong.”
The Wealth Management Connect scheme will facilitate up to RMB 300 billion (S$63 billion) in total investment flows and generate about RMB 3.2 billion (S$670 million) in annual wealth fees for banks. It is seen as a test-bed for the gradual relaxation of China’s tight capital controls and could eventually be extended to the whole of China.
Ping An Bank is one of the top banks in China with a wide network of more than 300 branches in the GBA and over 107 million retail customers.
OCBC Wing Hang Chief Executive, Ms Ivy Au-Yeung, said: “We are honoured to join forces with Ping An Bank. With its extensive customer base and innovative wealth management strategies, Ping An is trusted by its customers.”
Ms Au-Yeung added: “With our strong expertise in wealth management in Hong Kong, we will provide a wide variety of asset allocation options for customers. This partnership not only further expands customers’ investment channels but also advances financial cooperation between Hong Kong, Macau and China. This in turn will fuel business growth for both banks.”