Cross-boundary WMC – Account opening, remittance and investment process of Hong Kong investors

Cross-boundary WMC
Mainland investments

Step one:

  • Open a new bank account with remittance function with a Hong Kong bank participating in the Northbound Scheme as the “dedicated remittance account”.
  • Open an account with investment function with one of the Mainland banks partnering with the participating Hong Kong bank as the “dedicated investment account”. If the investor already has an account with investment function with the Mainland partner bank, the investor may instead designate the relevant account as the “dedicated investment account” under the Northbound Scheme.
  • The relevant banks in both places will pair the dedicated remittance account in Hong Kong with the dedicated investment account on the Mainland.

Step two:

  • All cross-boundary remittances between the dedicated remittance account and the dedicated investment account should be conducted in renminbi via the Cross-border Interbank Payment System (CIPS).
  • Investors may use their own renminbi funds to invest or exchange for renminbi funds in Hong Kong’s offshore market, and then deposit or transfer the renminbi to the dedicated remittance account.
  • Remit renminbi funds to the dedicated investment account on the Mainland via the dedicated remittance account in Hong Kong. For the quota amount, please refer to Quota management.

Step three:

  • Purchase eligible investment products distributed by the Mainland partner bank via the dedicated investment account.
  • In general, Hong Kong investors may log onto the online or mobile platform of the Mainland partner banks to browse further product information under the Northbound Scheme, give instructions to trade eligible investment products and remit the funds back to the Hong Kong dedicated remittance account.
  • Hong Kong investors may seek further information from participating Hong Kong and Mainland banks of the Northbound Scheme on the operation of the Northbound Scheme and the products and/or services offered by individual banks under the Northbound Scheme.

Investors should be aware that they may maintain only one dedicated remittance account in Hong Kong and one dedicated investment account on the Mainland at all times. If a Hong Kong bank or a Mainland partner bank becomes aware that an investor has more than one dedicated remittance or more than one investment account, the banks will take follow-up actions regarding the non-compliance, including but not limited to suspension of the investor from engaging in the Northbound Scheme; disposal of the products held by the investor and termination of his/her dedicated investment account and dedicated remittance account; or allowing the investor to hold the products until redemption at maturity while forbidding investment in any new products.