“There’s a lot of wealth accumulated in China, both for households, institutions and corporates, and they have a big need for diversification,” he said.
Yue said the current version of the scheme was “still in a pilot period” and acknowledged that eligibility barriers, limited investment products and a cumbersome selling process have held back adoption.
“We are already talking about 3.0 in terms of both the quota eligibility, product suite and importantly, the selling process,” Yue said. “And we will also explore whether it is possible to even extend the scheme geographically to other parts of China, not just the Greater Bay Area, which is the pilot area.”
In February 2024, authorities tripled the individual investment quota to 3 million yuan (US$412,956) and added yuan-denominated deposit products of mainland banks and other fund choices to the menu. The move was dubbed Wealth Connect 2.0.
