Qianhai Equity to launch WMPs in Hong Kong

Yield of its renminbi-denominated wealth management products could reach 10%.

The Qianhai Equity Trading Center will provide loans to Qianhai enterprises by launching RMB-denominated wealth management products in Hong Kong.

Media reports said the yields of these WMPs could reach 10% because of the higher risk posed by small- and medium-sized enterprises in
Qianhai, the financial pilot area of Shenzhen. Private banking clients and Hong Kong private equity firms will be the target group of investors.

Analysts said SMEs on the mainland, especially those that have long struggled to raise funds from the large state banks, could benefit from the WMPs.

They noted that following the launch of CNH trust products and cross-border loans, the scope of RMB business between Qianhai and Hong Kong will be further enhanced, and individual investors in Qianhai may be allowed to participate in the pilot program to directly invest in the overseas markets, or the so-called RQDII2.