Chiyu Banking Corporation Ltd. -Cross-border Wealth Management Services

Personal Banking Service

Cross-border Wealth Management Services

Overview of Cross-boundary

Chiyu Bank launched the Cross-boundary Wealth Management Connect Service to provide personal cross-border wealth management services for residents of the Guangdong-Hong Kong-Macao Greater Bay Area.

Through the “Southbound Scheme" and "Northbound Scheme" to connect with the mainland partner Xiamen International Bank (“XIB”) Zhuhai Branch, it provides more investment opportunities for residents of the Greater Bay Area.

What is “Cross-boundary Wealth Management Connect Scheme”?

The Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (“Cross-boundary WMC”) is one of the key initiatives under the mutual market access schemes between the capital markets of Hong Kong, Macao and the Mainland. The scheme was launched in September 2021, allowing eligible Mainland, Hong Kong and Macao residents in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) to invest in wealth management products distributed by banks in each other’s market through a closed-loop funds flow channel established between their respective banking systems.
The Cross-boundary WMC consists of the “Southbound Scheme” (applicable to eligible residents in Mainland) and the “Northbound Scheme” (applicable to eligible residents in Hong Kong).
Each Southbound or Northbound Scheme investor is subject to a quota of RMB 3 million.If the investor simultaneously selects both a bank and a securities firm for investment under the Northbound Scheme, the individual investor quota allocated between the bank and the securities firms will be RMB 1.5 million each.

Southbound Scheme
（Mainland Customer）
Northbound Scheme
（Hong Kong Customer）

Northbound Scheme

General

Eligible investors of Hong Kong can invest in eligible wealth management products by opening dedicated investment accounts with Xiamen International Bank (“XIB”) Zhuhai Branch. The remittance under the scheme will be conducted and managed in a closed-loop.

Eligible Investors

Hold a Hong Kong Identity Card (including both permanent and non-permanent residents;
Invest in their personal capacity, but not as joint-name or corporate customers, and has not authorised any third party to operate the account; and
Be assessed by Chiyu Bank as not being a vulnerable customer

Eligible Wealth Management Products

Public fixed income wealth management products (which primarily invest in bonds and deposits) and equity wealth management products (which primarily invest in equities) issued by Mainland wealth management firms and being assessed by the issuers and Mainland distributing banks as products with risk rating of “R1” to “R3” (excluding wealth management products for the purpose of cash management);
Public securities investment funds (excluding commodity futures funds) being assessed by Mainland public fund managers and Mainland distributing banks as products with risk rating of “R1” to “R4”
RMB-denominated deposit products distributed by Mainland banks

Northbound Scheme Operational Arrangements

Account Opening Documents and Process

Visit any of our designated branches in Hong Kong in person to open and a Northbound Scheme dedicated remittance account
Visit Xiamen International Bank (“XIB”) Zhuhai Branch in person to open a dedicated investment account
- Required documents：
  - HK Identity Card
  - Exit-Entry Permit for Travelling to and from Hong Kong and Macau OR PRC Passport
  - Mobile number for real-name registration

Southbound Scheme

General

Eligible investors of Mainland cities in the Greater Bay Area can invest in eligible wealth management products by opening dedicated investment accounts with Chiyu Bank in Hong Kong. The remittance under the scheme will be conducted and managed in a closed-loop.

Eligible Investors

Have full civil capacity
GBA residents or any those who have contributed at least 2 consecutive years of social insurance / individual income tax in the 9 GBA mainland China cities
Have 2 years or more of investment experience and meet one of the following conditions: the month-end balances of family financial net assets in the past 3 months are not less than RMB 1 million, or the month-end balances of family financial assets in the past 3 months are not less than RMB 2 million, or the individual average annual income is not less than RMB 400,000 in the past 3 years
Not assessed by Chiyu Bank as vulnerable customers for all investment products
Should invest in personal capacity, but not as joint-name or corporate customers, and has not authorised any third party to operate the account

Eligible Wealth Management Products

Investment products (excluding listed products traded and settled on the Hong Kong Exchanges and Clearing Limited)
- All funds domiciled in Hong Kong and authorized by the SFC, primarily investing in Greater China equity and assessed as “non-complex” by Hong Kong banks distributing such products
- Except for the funds specified above, funds that are domiciled in Hong Kong and authorized by the SFC and are assessed as “low” risk to “medium-high” risk and “non-complex” by Hong Kong banks distributing such products, excluding high-yield bond funds and single emerging market equity funds;
- Bonds assessed as “low” risk to “medium” risk and “non-complex” by Hong Kong banks distributing such products (not provided by the Bank at the initial phase)
  Learn more >
Deposits
- RMB, Hong Kong and foreign currency savings or fixed deposit

Southbound Scheme Operational Arrangements

Account Opening Documents and Process

Visit Xiamen International Bank (“XIB”) Zhuhai Branch for eligibility verification, open a new or designate an existing account as dedicated account for Southbound Remittance
- Required documents：
  - PRC Identity Card
  - Address proof document
  - Household registration or social security
  - Assets proof or income proof document
1. Visit any one of our designated branches in Hong Kong in person to open a new dedicated investment account and bring along the required documents; or
2. Open Wealth Management Services at our designated attesting network, Xiamen International Bank Zhuhai Branch by completing customer verification and witnessing sign-off of the account-opening documents

Disclaimer

The above information is for reference only. It is compiled by the Bank based on the latest information issued by the regulatory agencies and will be updated at any time without further notice. The above information is for reference only and does not constitute an offer, solicitation, suggestion, opinion or any guarantee to anyone to buy, sell, subscribe or trade any investment product or service contained herein, nor does it constitute Chiyu Bank's promotion of its " "Cross-border Wealth Management" service. Regarding the terms and conditions, investment involves risks. Before trading or investing, you should be responsible for your own data collection and research. You should carefully consider whether it is appropriate to conduct transactions or investments based on your own financial situation, investment experience and goals, or seek professional advice from independent parties as needed.

Important Notes

The following Risk Disclosure Statement may not disclose all the risks involved. The following content is compiled in accordance with the latest information published by regulatory authorities. You should undertake your own research and study before you trade or invest. You should carefully consider whether trading or investment is suitable in light of your own financial position and investment objectives.

Chiyu Banking Corporation Limited (the "Bank") is appointed by fund houses as an agent. The investment fund is a product of fund houses, but not of the Bank. In respect to an eligible dispute (as defined in the Terms of Reference for the Financial Dispute Resolution Centre in relation to the Financial Dispute Resolution Scheme) arising between the Bank and the customer out of the selling process or processing of the related transaction, the Bank is required to enter into a Financial Dispute Resolution Scheme process with the customer; however, any dispute over the contractual terms of the fund product should be resolved directly between the fund house and the customer.

Risk Disclosure of Investment Funds

Investment in Investment Funds involves significant risks. It is impossible to describe every risk associated with such an investment that is relevant to you. Before making your investment decision, you should carefully read the offering documents of the relevant Investment Fund including, in particular, the sections about risks and ensure you fully understand the nature and all the risks associated with an investment in the relevant Investment Fund and are willing to assume such risks.

Investment Funds or services are not equivalent to, nor should they be treated as a substitute for, time deposits. Although investment may bring opportunities for profit, each investment product or service involves potential risks. Due to dynamic changes in the market, the price movement and volatility of investment products may not be what you expect. Your investment funds may increase or decrease due to the purchase or sale of investment products. The value of investment funds may go up as well as down, and the investment funds may become valueless. You may not receive any return from investment funds. You may not be able to liquidate parts of your investment immediately under certain market situation. The investment decision is yours, but you should not invest in these products unless the intermediary who sells them to you has explained to you that these products are suitable for you with regard to your financial situation, investment experience and investment objectives. Investment involves risks. Please refer to the relevant investment fund offering documents for further details, including risk factors. If you have any inquiries on the nature and risks involved in trading or investment funds, etc, you should seek advice from an independent financial adviser.

Conversion Limitation Risk of RMB

RMB investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of RMB may result in losses in the event that the customer converts RMB into Hong Kong dollar or other foreign currencies. RMB is currently not fully freely convertible. Individual customers can be offered CNH rate to conduct conversion of RMB through bank accounts and may occasionally not be able to do so fully or immediately, for which it is subject to the RMB position of the banks and their commercial decisions at that moment. Customers should consider and understand the possible impact on their liquidity of RMB funds in advance.

Risk of Foreign Currency Trading

Foreign currency investments are subject to exchange rate fluctuations which may provide both opportunities and risks. The fluctuation in the exchange rate of foreign currency may result in losses in the event that customer converts the foreign currency into Hong Kong dollar or other foreign currencies and customer has to bear the cost of currency exchange (i.e. spread between buy and sell of relevant currencies).

Risk of Relevant Quota being Used Up through Investment under Southbound Scheme

When the usage of the aggregate quota or the individual investor quota under the Southbound Scheme reaches its upper limit, instructions for remittance from the mainland China to Hong Kong under the relevant service will be put on hold. The Bank will refuse to accept the payment and return it back to dedicated remittance account.

For enquiries, please visit designated branches or call our customer service hotline at (852) 2232 3625.