Prof. Gavin Feng Was Invited To Attend “Stock Talk” Program To Share Insights On WMC

Prof. Gavin Feng, Scientist at AIFT and Associate Professor in the College of Business at CityU, was invited to attend the “Stock Talk (談股論金)” program on CMG Radio The Greater Bay on 9 Dec 2024, where he shared his expert insights on the launch and impact of the Greater Bay Area’s “Cross-boundary Wealth Management Connect” (WMC) 2.0 scheme.

Prof. Feng highlighted that the launch of WMC 2.0 marks a significant advancement in enhancing interconnectivity of the financial markets within the Greater Bay Area. The inclusion of securities firms in this pilot phase has expanded investment options for investors in Greater Bay Area. Additionally, the lowering of entry thresholds and the increase in investment limits have made cross-boundary wealth management more accessible, particularly for younger investors with high income potential.

In terms of specific updates, Prof. Feng pointed out that WMC 2.0 has further enriched the selection of investment products. For example, under the “Northbound Scheme”, investors from Hong Kong and Macau can now purchase Mainland RMB deposits and higher-risk public mutual funds. Meanwhile, the “Southbound Scheme” allows Mainland investors to invest more freely in Hong Kong and Macau’s bonds, funds, and foreign currency deposits. These changes provide investors with greater flexibility and higher potential returns. Furthermore, he emphasized that the continued use of RMB for cross-boundary settlements reduces foreign exchange risks and strongly supports the internationalization of RMB.

Looking ahead, Prof. Feng proposed several ideas for the future development of WMC. He suggested the gradual expansion of the scheme beyond the Greater Bay Area, enabling more investors across China to benefit. He also stressed the importance of diversifying product offerings by introducing more international investment options, such as emerging market funds, to enhance the diversity of investment choices. Furthermore, Prof. Feng shared practical advice for individual investors. He recommended them to choose products in line with their risk tolerance, carefully plan for liquidity needs, and adopt a long-term investment approach while maintaining a strong awareness of potential risks.

In conclusion, Prof. Feng described the launch of WMC 2.0 as a milestone in the further integration of the Greater Bay Area’s financial markets. He noted that the initiative provides a valuable example of China’s efforts to open its financial markets to the world. With continuous innovation and improvement, WMC is poised to play an increasingly important role in fostering high-quality regional economic growth.

Listen to the episode on the RTHK Website: CMG Radio The Greater Bay