Core Viewpoint - The chairman of Bank of China Wealth Management, Huang Danggui, emphasized the importance of promoting cross-border wealth management development to enhance the internationalization of the Renminbi (RMB) [1] Group 1: Cross-Border Wealth Management - Wealth management companies are encouraged to actively and orderly promote the development of cross-border wealth management [1] - The widespread use of RMB in international payments during the 14th Five-Year Plan period is expected to significantly increase global RMB investments, creating a mutually reinforcing relationship [1] Group 2: Recommendations for RMB Internationalization - To facilitate the smooth progress of RMB internationalization, it is suggested to further expand the depth and breadth of offshore markets [1] - Enhancing offshore RMB asset management products can provide convenient capital allocation for "two ends abroad" [1] - It is recommended to appropriately relax cross-border investment quota restrictions, such as increasing the exclusive QDII quota for wealth management companies [1]

Group 1 - The core viewpoint of the article is that the launch of Cross-Border Wealth Management Connect 2.0 has significantly exceeded market expectations, leading to a tenfold increase in customer numbers and a substantial rise in asset management scale compared to the previous phase [1][3][4] - The number of individual investors participating in Cross-Border Wealth Management Connect has reached approximately 162,000, representing a growth of over 120% compared to the first phase, with mainland investors accounting for 109,000 [1][2] - The asset holdings of Hong Kong participating institutions in the southbound channel have doubled, exceeding 16 billion [1] Group 2 - The product preferences of southbound customers have diversified significantly, with funds primarily flowing into three categories: multi-asset allocation products, technology and AI-themed funds, and high-dividend products [2][5] - Northbound customers are increasingly interested in investing in leading mainland enterprises, as reflected by a noticeable increase in related inquiries [2][5] - The introduction of brokers into Cross-Border Wealth Management Connect has brought new vitality and healthy competition to the market, with banks focusing on risk management and compliance while brokers enhance platform operations and customer responsiveness [6] Group 3 - Future expectations for Cross-Border Wealth Management Connect include an increase in personal investment quotas and a broader range of investable products, including alternative investments such as private equity and hedge funds [7] - In the context of a global interest rate shift, the company maintains an optimistic outlook on technology sector investments and suggests a balanced approach to stock and bond allocations based on investor risk preferences [8] - Investors in the Greater Bay Area are characterized by an international perspective, showing interest in diverse investment opportunities, particularly in emerging sectors like artificial intelligence [9]

Core Insights - The People's Bank of China Shenzhen Branch and the State Administration of Foreign Exchange Shenzhen Branch held a press conference to discuss the financial operations in Shenzhen for the third quarter of 2025 [1] - The "Cross-Border Wealth Management Connect" 2.0 optimization measures have been well received, with approximately 31,000 new individual investors added in Shenzhen [1] - The total cross-border payment amount reached 50.74 billion yuan, accounting for nearly 50% of the Greater Bay Area's total, with a business scale growth of over 8 times compared to the 1.0 phase [1]

Core Viewpoint - East Asia Bank has opened its flagship branch in Shenzhen's Futian district, aiming to provide financial services to high-net-worth clients and talents traveling between Shenzhen and Hong Kong, leveraging the synergy between mainland China and Hong Kong [2] Group 1: Business Expansion - The new flagship branch is strategically located near the Futian High-Speed Railway Station to cater to cross-border clients [2] - The bank has observed a significant increase in its affluent client base in the Greater Bay Area, with a 39% growth in the first half of the year [2] - There has been a 54% increase in clients traveling south to Hong Kong, and the assets under management (AUM) for cross-border wealth management have surged by nearly 90% [2] Group 2: Strategic Focus - The bank plans to actively develop its cross-border wealth management business to capitalize on the growing wealth in the Greater Bay Area [2]

Core Viewpoint - The expansion of cross-border wealth management products in the Greater Bay Area provides new investment options for mainland investors, particularly through the "Southbound Pass" mechanism [1][4]. Summary by Sections Product Range Adjustment - China Merchants Yonglong Bank has revised the terms and conditions for the "Southbound Pass," significantly altering the definition of "designated wealth management products" by removing previous restrictions on investment types, including stocks, non-complex funds, and low to medium-risk bonds [2][4]. - The revised definition now includes "wealth management products permitted by regulatory authorities," effective from October 27, 2025 [2][4]. Inclusion of Structured Deposits - The bank has expanded the range of "designated wealth management products" to include structured deposits, which were previously excluded. This change aims to broaden investment choices for clients while maintaining the same risk level requirements [5][6]. - Structured deposits are defined as a supplementary form of general deposits, often linked to currencies or commodities, providing potential additional returns based on market performance [6]. Market Response and Product Availability - Some banks participating in the "Southbound Pass" have already begun offering structured products, while others have yet to do so. For instance, Bank of China (Hong Kong) and China CITIC Bank International have included structured deposits in their offerings, while HSBC and others have not yet listed such products [7][9]. - As of August, there were 167,100 individual investors participating in the "Southbound Pass," with a total cross-border fund transfer amounting to 123.55 billion yuan [9][10]. Future Developments - The Hong Kong Monetary Authority is discussing "Cross-Border Wealth Management Connect 3.0," which aims to optimize various aspects of the program, including eligibility, product range, and sales processes, with potential expansion beyond the Greater Bay Area [9].

Core Viewpoint - The "Cross-Border Wealth Management Connect" is set to expand its geographical reach and product offerings, with a 3.0 version draft expected by the end of this year, aimed at enhancing market vitality [1][3]. Group 1: Expansion Plans - The Hong Kong Financial Secretary, Paul Chan, announced plans to expand the "Cross-Border Wealth Management Connect" to regions beyond the Guangdong-Hong Kong-Macao Greater Bay Area, supported by central government initiatives [1]. - The 3.0 version is anticipated to include more cities, with strong expectations for the inclusion of major cities like Beijing and Shanghai, which have significant overseas investment demand [3]. Group 2: Current Status and Participation - As of July 2025, the total number of individual investors participating in the "Cross-Border Wealth Management Connect" has reached 164,600, with 53,000 from Hong Kong and Macao, and 111,600 from mainland China [4]. - The total cross-border remittance limit under the 2.0 version is set at 150 billion yuan, with current remittance levels remaining ample, as evidenced by 109.67 billion yuan in remittances between mainland China and Hong Kong, accounting for 90.7% of the total [5]. Group 3: Financial Transactions - In July 2025, the mainland banks processed 2.464 billion yuan in cross-border remittances, representing 84.5% of the month's total transactions, while securities companies accounted for 15.5% with 451 million yuan [6]. - Cumulatively, by the end of July 2025, mainland banks had facilitated 115.59 billion yuan in cross-border remittances, compared to 5.33 billion yuan by securities companies [6].

Core Viewpoint - The Hong Kong Financial Secretary, Paul Chan, announced plans to appropriately expand the "Cross-Border Wealth Management Connect" program with support from central authorities to enhance market vitality [1] Group 1: Program Expansion - The expansion will include an increase in the geographical scope, product types, and participant groups [1] - Regulatory bodies from both regions are currently researching and discussing the optimization of the Cross-Border Wealth Management Connect 3.0 version, with a draft expected by the end of this year [1] Group 2: Market Expectations - Industry professionals, such as the head of international wealth management at CICC, expressed strong anticipation for the optimized 3.0 version, particularly the inclusion of major cities beyond the Greater Bay Area, specifically Beijing and Shanghai [1] - There is a significant demand from investors in these first-tier cities for overseas asset allocation [1]

Core Viewpoint - Huahua Wealth Management has launched a new financial product, the Global Gain Huahua Trend Guide, in collaboration with Standard Chartered Bank, marking its first partnership with a foreign bank for product distribution [1][2]. Group 1: Product Overview - The Global Gain Huahua Trend Guide is a "fixed income plus" investment strategy product, with a minimum holding period of one month, and includes allocations to overseas CIO-selected funds [1]. - The product is designed to provide a convenient experience of "global assets, local services" by leveraging Standard Chartered's global channels and professional services [1][2]. Group 2: Fund Management and Strategy - The CIO funds are managed by the French asset management firm, Amundi, and are based on a selection framework that aims to provide multi-asset investment solutions [2]. - Since September 2022, Standard Chartered has sold the CIO fund series across 12 global markets, with assets under management exceeding $2.5 billion, approximately 178 billion RMB, indicating strong market recognition [2]. Group 3: Competitive Advantages - The product features three main advantages: low entry barriers to global investment resources, a cross-border and global asset allocation approach, and a top-tier risk management system [2]. - Huahua Wealth Management aims to leverage its global resource advantages and deep insights into the local market to offer a comprehensive global multi-asset investment solution [3].

Investment Rating - The investment rating for Standard Chartered Group is maintained at "Buy" [1] Core Views - The recent public sentiment disturbance due to allegations against Standard Chartered regarding illegal payments to sanctioned entities has led to a stock price correction, which is viewed as a potential opportunity for increased allocation [1][2] - Despite short-term volatility, the long-term value proposition remains strong, supported by the bank's extensive network and licenses in emerging markets, positioning it well for growth in transaction banking and wealth management [1][3] - The bank's wealth management business is expected to benefit from strong global cross-border asset allocation demand, with a projected double-digit CAGR in wealth management revenue from 2024 to 2029 [1][4] Summary by Sections Investment Rating - The target price is set at HKD 164.30, with the current closing price at HKD 139.60, indicating potential upside [1][8] Financial Performance - The forecasted net profit for 2025 is USD 4.33 billion, with a projected PB of 0.85 times [5] - The bank's revenue is expected to grow from USD 19.70 billion in 2024 to USD 22.32 billion in 2027, with a steady increase in net profit margins [11][14] Market Positioning - Standard Chartered has a unique advantage in cross-border business due to its deep integration in emerging markets, particularly in ASEAN, which is a key destination for global industrial transfer [3] - The bank's light capital model helps mitigate the impact of interest rate cuts on revenue, maintaining a low exposure to commercial real estate in Hong Kong [3] Wealth Management Growth - The wealth management segment has seen a 23.1% year-on-year increase in revenue for the first half of 2025, with 135,000 new client accounts opened [4] - The bank's strategy includes a diverse product offering that covers high-quality global assets, catering to affluent clients [4]

Group 1 - The core viewpoint of the article highlights the positive market response to the "Cross-Border Wealth Management Connect" 2.0 optimization measures since their implementation [1] - As of the end of June this year, over 160,000 individual investors have participated in the program, representing an increase of over 120% compared to version 1.0 [1] - The total market value of investments held by Hong Kong participating institutions in the southbound scheme has reached over 16 billion RMB, showing a twofold increase compared to "Cross-Border Wealth Management Connect" 1.0 [1] Group 2 - Investors in the southbound scheme are increasingly diversifying their product choices, moving from primarily deposit products to a growing allocation in funds and bonds [2]