Core Viewpoint - The "Cross-Border Wealth Management Connect" is set to expand its geographical reach beyond the Guangdong-Hong Kong-Macao Greater Bay Area, with regulatory adjustments currently under research and optimization, aiming for a 3.0 version consultation draft by the end of this year [1][4]. Group 1: Expansion Plans - The Hong Kong Financial Secretary, Paul Chan, announced plans to appropriately expand the geographical scope, product types, and participant groups of the "Cross-Border Wealth Management Connect" to enhance market vitality [2]. - The 3.0 version of the program is highly anticipated in the industry, particularly for its potential to include major cities like Beijing and Shanghai, which have a strong demand for overseas asset allocation [4]. Group 2: Current Participation and Usage - As of July 2025, the number of individual investors participating in the "Cross-Border Wealth Management Connect" has reached 164,600, including 53,000 from Hong Kong and Macao, and 111,600 from mainland China [5]. - The total cross-border remittance limit for the program is set at 150 billion yuan, with the current remittance amount remaining sufficient. As of July 2025, the cross-border remittance amount between mainland China and Hong Kong was 109.67 billion yuan, accounting for 90.7% of the total remittance [6]. Group 3: Institutional Participation - Banks continue to dominate the "Cross-Border Wealth Management Connect" business, handling 84.5% of the remittance in July, while securities companies accounted for 15.5% [7]. - By the end of July 2025, banks had processed a total of 1,155.87 billion yuan in cross-border remittances, compared to 53.32 billion yuan processed by securities companies [7].

Group 1 - The core viewpoint emphasizes that wealth management and investment advisory services should be oriented towards maximizing client investment goals, necessitating a systematic framework that integrates assets, strategies, and funds [10] - The discussion highlights the importance of a comprehensive understanding of client needs through professional assessment tools to match appropriate risk levels and asset allocation strategies [14] - The need for a structured approach to asset allocation is underscored, focusing on long-term capital market assumptions and short-term dynamic adjustments based on macroeconomic data [14] Group 2 - The necessity of distinguishing between onshore and offshore investment scenarios is pointed out, with a focus on the limitations of onshore options primarily relying on QDII products and the interconnected market mechanisms [11] - The discussion on diversification emphasizes that effective asset allocation should consider various dimensions beyond just major asset classes, including legal nature and supply chain positions [13] - The importance of understanding the characteristics of each asset class and their long-term risk-return profiles is highlighted, advocating for a return to fundamental principles in investment decisions [15] Group 3 - The conversation addresses the balance between depth and breadth in asset allocation, warning against excessive diversification that may dilute returns while stressing the importance of risk control [15] - The role of correlation among different assets in portfolio management is discussed, noting that while diversification is essential, it should not compromise the overall effectiveness of the investment strategy [14] - The observation that many portfolios may appear diversified but are often concentrated in a few core holdings, leading to limited contributions from peripheral assets, is made [14]