Amendments to Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area

(Translation version)
Our ref.: B1/15C
B9/206C
G16/1C
24 January 2024
The Chief Executive
All Registered Institutions
Dear Sir/Madam,
Amendments to Implementation Arrangements for the Cross￾boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area The Cross-boundary Wealth Management Connect Pilot Scheme (“Cross￾boundary WMC”) has been operating smoothly since its official launch in 2021, providing the foundation and the conditions for enhancements of the Cross-boundary WMC. On 28 September 2023, the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the Hong Kong Monetary Authority (“HKMA”), the Securities and Futures Commission of Hong Kong (“SFC”) and the Monetary Authority of Macao jointly announced that further enhancements would be made to the Cross-boundary WMC, including expanding the scope of Southbound and Northbound eligible wealth management products, increasing the individual investor quota as appropriate and further enhancing promotion and sale arrangements. After discussion with other relevant regulatory authorities and consultation with the financial industry, this Circular sets out the amended “Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area” (“Implementation Arrangements”) for the Cross￾boundary WMC between banks in the nine Mainland cities in the

Guangdong-Hong Kong-Macao Greater Bay Area1 and banks in Hong Kong2 . The amended Implementation Arrangements apply to Hong Kong banks participating in business activities under the Cross-boundary WMC, with key amendments including requirements on account opening arrangements, individual investor quota, eligible wealth management products, promotion and sale, etc. Hong Kong banks should ensure that their business activities under the Cross-boundary WMC comply with the requirements set out in this Implementation Arrangements. Guidance in respect of the Southbound and Northbound Schemes for the pilot Cross￾boundary WMC is provided in Annex 1 and Annex 2 respectively, as well as the Frequently Asked Questions at the Appendix. Hong Kong banks should, through a cooperation agreement, to ensure that their Mainland partner banks should comply with the relevant requirements applicable to Mainland partner banks in this Implementation Arrangements. Besides, implementation arrangements applicable to Mainland banks are promulgated accordingly by the regulatory authorities on the Mainland (Please refer to the Implementation Arrangements for the Cross-boundary WMC Pilot Scheme in the Greater Bay Area (《粵港澳大灣區“跨境理財 通”業務試點實施細則》) issued by the Mainland regulatory authorities (“Mainland Guidance”) on 24 January 2024). Hong Kong banks should comply with the relevant requirements set out in the implementation arrangements promulgated by the Mainland authorities. In addition to the implementation arrangements of the two places, Hong Kong banks should also continue to comply with all applicable prevailing regulatory requirements (including those issued by the HKMA and the SFC). Eligible banks in Hong Kong which intend to embark on Cross-boundary WMC activities should put in place systems, internal control measures and operating procedures in accordance with the requirements stipulated in this Implementation Arrangements, notify and submit a self-assessment to the HKMA at least one month prior to the launch of such activities. Upon receiving “no objection” notification from the HKMA, the bank may embark on Southbound Scheme and/or Northbound Scheme activities. Eligible banks in Hong Kong which have already received “no-objection”

In this Circular, Mainland cities in the GBA refers to the Mainland cities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoxing. 2 For the avoidance of doubt, the implementation arrangements and specific regulatory requirements of the Cross-boundary WMC described in this Circular does not extend to cover the Cross-boundary WMC activities of securities firms and between the Mainland cities and Macao.

notification from the HKMA for embarking on Cross-boundary WMC activities are not required to notify the HKMA of business adjustments made purely as a result of these amendments3 . The HKMA expects that the enhancements of the Cross-boundary WMC will bring more growth opportunities to Hong Kong’s banking and wealth management industry, and strengthen the role of Hong Kong as an international asset management centre. Taking into account the operations of the Cross-boundary WMC, the HKMA and other relevant regulatory authorities will review and enhance from time to time the arrangements for the Cross-boundary WMC. This Circular will take effect on 26 February 2024. After this Circular has taken effect, it supersedes the HKMA’s circular dated 10 September 2021 on “Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area”, and the Frequently Asked Questions added on 1 December 2021. Should you have any questions about this Circular, please contact Ms Ting Wang on 2878-8541, Mr Anfield Ho on 2597-0669, Ms Anita Chan on 2878-1538 or Ms Flora Sze on 2878-1758. Yours faithfully, Arthur Yuen Deputy Chief Executive Encl. cc: SFC (Attn: Ms Christina Choi, Executive Director (Investment Products) Mr Keith Choy, Interim Head (Intermediaries))

For the avoidance of doubt, Hong Kong banks intending to have material changes to their Cross￾boundary WMC activities (for example, add new Mainland partner bank(s), add Southbound/ Northbound activities) should notify the HKMA.

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Regulatory Requirements on the Southbound Scheme The Southbound Scheme refers to eligible Mainland investors investing in eligible wealth management products offered by banks in Hong Kong via designated channels. An eligible Mainland investor should open a bank account on the Mainland with cross-boundary remittance function as the remittance account under the Southbound Scheme (“dedicated remittance account”). Eligible banks in Hong Kong should open an account in Hong Kong with investment function as the investment account under the Southbound Scheme (“dedicated investment account”) for the said eligible Mainland investor, and pair it with his/her dedicated remittance account on the Mainland, with closed-loop management of funds flow between the accounts. Subsequently, the Mainland investor will be able to remit funds through the dedicated remittance account on the Mainland to the dedicated investment account in Hong Kong and purchase eligible wealth management products offered by the bank in Hong Kong via the dedicated investment account.

1. Eligible banks
   1.1 Registered institutions registered under the Securities and Futures
   Ordinance (“SFO”) for carrying on Type 1 regulated activity (dealing in securities), and engaging in retail banking or private banking business (“Hong Kong banks”) may embark on Southbound Scheme activities in accordance with this Circular.
   1.2 To embark on Southbound Scheme activities, a Hong Kong bank
   should partner with an eligible Mainland bank and sign a cooperation agreement on Cross-boundary WMC business setting out clearly each party’s responsibilities and obligations (including that the Mainland partner bank should comply with the relevant requirements set out in this Circular). Eligible Mainland banks are financial institutions of the Mainland’s banking industry in the GBA which meet the criteria set by Mainland regulatory authorities (“Mainland partner banks”). A Hong Kong bank may at the same time partner with more than one Mainland partner bank to embark on Southbound Scheme activities.
   1.3 Under the Southbound Scheme, Mainland partner banks undertake
   the cross-boundary funds remittances and transfers through dedicated remittance accounts, and Hong Kong banks undertake the sale of wealth management products, including the opening of dedicated investment accounts for eligible Mainland investors.

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Hong Kong banks intending to embark on Southbound Scheme activities are not required to seek approval from the HKMA, but should notify and submit a self-assessment to the HKMA at least one month prior to the launch of such activities. The HKMA may provide comments or request for supplementary information from the banks as needed. After obtaining “no objection” notification from the HKMA, Hong Kong banks can embark on such activities (including starting to display and/or provide factual representations that the bank provides Southbound Scheme services). Before officially launching Cross-boundary WMC activities and embarking on Southbound Scheme activities with the Mainland partner bank, Hong Kong banks should ensure the Mainland partner bank has been confirmed by the relevant Mainland regulatory authorities that it is eligible for providing Cross-boundary WMC services. The HKMA and the PBoC will have reciprocal notification arrangements on the particulars of banks embarking on Cross-boundary WMC activities in their respective jurisdictions.
1.4 Hong Kong banks intending to exit their Southbound Scheme
activities or have material changes to their Southbound Scheme activities (for example, switch to another Mainland partner bank) should devise a plan for the exit or relevant changes, including but not limited to arrangements on affected customers (including arrangements for notifying affected customers and arrangements for the assets and funds of their existing customers) (if applicable), the timetable for arrangements of the exit or relevant changes, relevant control measures etc. They should consult the HKMA in advance on their plans for the exit or relevant changes.
2. Eligible investors
2.1 Investors participating in the Southbound Scheme should comply
with the criteria set out by the Mainland regulatory authorities. Southbound Scheme investors should invest in their personal capacity, but not as joint-name or corporate customers, and should not authorize a third party to operate the account.
2.2 Mainland partner banks are responsible for verifying the above￾mentioned eligibility of the Mainland investors for participating in
the Southbound Scheme. A Hong Kong bank should regard an investor eligible as a Southbound Scheme customer only after receiving the confirmation of the investor’s eligibility from its partnering Mainland partner bank and assessing the investor as not

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being a vulnerable customer (“VC”) (see paragraph 3.5 below). Hong Kong banks should conduct customer due diligence (“KYC”) on all customers according to the prevailing requirements. For details, please refer to the section on “Account opening arrangements”.
3. Account opening arrangements
3.1 Before opening a dedicated investment account under the
Southbound Scheme (including an investment account and relevant settlement account) for an investor, Hong Kong banks should receive confirmation from their Mainland partner banks about the investor’s eligibility for the Southbound Scheme and assess the investor as not being a VC (see paragraph 3.5 below). Regardless of whether such investor already has accounts with the Hong Kong bank, a separate investment account and a related settlement account should be opened with the Hong Kong bank as the dedicated investment account for such investor’s Southbound Scheme investments. This is to enable effective monitoring of funds remittances and transfers conducted through dedicated investment accounts and implementation of the closed-loop funds flow management (see paragraph 4.1 below). Hong Kong banks should confirm (either in writing or through an internal system) with their Mainland partner banks the particulars of the investors, such as their dedicated remittance account numbers.
3.2 Hong Kong banks should conduct customer due diligence for
customers opening a dedicated investment account in accordance with the prevailing requirements 1 , including taking all reasonable steps to establish the true and full identity of each of their customers, and of each customer’s financial situation, investment experience, and investment objectives. Besides, Hong Kong banks should assess the customers’ risk profile 2 . As to a Southbound Scheme dedicated investment account, customers should (i) apply for a dedicated investment account for the Southbound Scheme by attestation, i.e. the verification of client identity, sighting of identification documents and signing of client agreement to be certified by the Mainland partner bank; or (ii) go to Hong Kong to

Including the HKMA’s requirements and paragraph 5.1 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“SFC Code of Conduct”) issued by the Securities and Futures Commission (“SFC”). Please refer to Q2 and Q3 of the Frequently Asked Questions (“FAQs”) on Compliance with Suitability Obligations by Licensed or Registered Persons issued by the SFC.

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apply for a dedicated investment account for the Southbound Scheme with the relevant bank. To facilitate the account opening process, if the account will be opened through the approach as mentioned in (ii) above, Hong Kong banks can offer online channels for customers to submit information, or Mainland partner banks can, in accordance with customers’ instructions, assist the customers to fill in the required account opening documents beforehand and transfer such documents to Hong Kong banks on the customers’ behalf. Customers can then travel to Hong Kong to complete the account opening procedures after preliminary approval by Hong Kong banks.
3.3 Each eligible investor under the Southbound Scheme should, at all
times, newly open only one dedicated remittance account or designate his/her account maintained with the same Mainland partner bank as a dedicated remittance account 3 , and open only one Hong Kong bank’s dedicated investment account 4 . Hong Kong banks and their Mainland partner banks should take corresponding measures to ascertain that investors have not conducted Southbound Scheme activities with other Hong Kong banks. Such dedicated investment account should be used only for investment purposes under the Southbound Scheme, and should not be used for the provision of any other services of the Hong Kong bank.
3.4 Prior to opening a dedicated investment account under the
Southbound Scheme for customers, Hong Kong banks should provide sufficient disclosure and proper explanation to customers to ensure that they understand the requirements of the Southbound Scheme (including the respective roles and responsibilities of Mainland partner banks and Hong Kong banks, closed-loop funds flow and two-way funds transfer requirements, and complaint handling mechanism, etc. ), investor responsibility, associated risks (including exchange rate risk and risks under quota management, etc. ), disclosure of information to relevant regulatory authorities and handling of non-compliance or breaches by investors upon identification (see section on “Non-compliance and breaches”).
3.5 Hong Kong banks should not provide Cross-boundary WMC

3 For details, please refer to the Mainland Guidance. Southbound Scheme investors can choose at most one bank in Hong Kong and Macao respectively to open a new dedicated investment account. For details, please refer to the Mainland Guidance.

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services to VCs. Prior to opening a dedicated investment account for a customer, Hong Kong banks should conduct an assessment according to the relevant guidelines 5 issued by the HKMA to determine whether the customer is a VC. After opening a dedicated investment account, if a customer becomes a VC due to a change in personal circumstances, Hong Kong banks should take follow-up actions. In general, the customer can keep or terminate such dedicated investment account. If the customer chooses to keep such dedicated investment account, Hong Kong banks can continue to provide Southbound Scheme services to the customer. In doing so, Hong Kong banks should comply with all prevailing regulatory requirements on providing enhanced investor protection measures to VCs, where applicable.
3.6 Hong Kong banks should notify their Mainland partner banks
whether or not a dedicated investment account is successfully opened. If a dedicated investment account is successfully opened, it should be paired with the investor’s dedicated remittance account maintained with the Mainland partner bank, thereby ensuring closed￾loop funds flow.
4. Cross-boundary remittance
4.1 Closed-loop fund flow: Hong Kong banks should ensure that an
investor’s dedicated investment account will only be used to transfer funds to or receive funds from the dedicated remittance account with which such dedicated investment account is paired, and to receive investment proceeds arising from Southbound Scheme investments. Funds in the dedicated investment account should only be used for purchasing eligible wealth management products (see section on “Eligible wealth management products”) or be remitted back to the dedicated remittance account. Hong Kong banks should ensure that their customers will not transfer funds from the dedicated investment accounts to any other accounts than the dedicated remittance accounts they are paired with (including accounts outside

5 For details, please refer to section (A)(III.2) of Annex 1 to the circular issued by the HKMA on 25 September 2019 entitled “Investor Protection Measures in respect of Investment, Insurance and Mandatory Provident Fund Products”. When conducting the VC holistic assessment according to the aforementioned requirement for a Southbound Scheme customer, in respect of whether the customer possesses investment experiences, in general, the customer could be regarded as possessing investment experience in non-complex products if the customer possesses investment experience (for example having purchased funds with Mainland banks, irrespective of a complex or non-complex product). Hong Kong banks should not accept a “VC for non-complex products” as an investor under the Southbound Scheme.

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Hong Kong), withdraw cash from the dedicated investment accounts or use funds in the dedicated investment accounts for purposes such as pledging such amounts or using such amounts as leverage or guarantee.
4.2 Cross-boundary remittance should be conducted in Renminbi
(“RMB”): All cross-boundary remittances between dedicated remittance accounts and dedicated investment accounts should be conducted in RMB. That means, dedicated remittance accounts maintained by Mainland partner banks should only conduct cross￾boundary outward remittance of RMB funds or receive inward remittance of RMB funds. Dedicated investment accounts maintained by Hong Kong banks should only receive inward remittance of RMB funds from or conduct cross-boundary outward remittance RMB funds to dedicated remittance accounts. Regardless of the settlement currencies of the wealth management products being invested, funds should be converted into RMB when customers exit their investments and remitted back to the dedicated remittance accounts.
4.3 Hong Kong banks may provide foreign exchange services to
Southbound Scheme customers for purchasing eligible products denominated in Hong Kong dollars and foreign currencies. Customers may also invest directly in eligible products denominated in RMB in the offshore market.
4.4 Both the principal and investment proceeds of Southbound Scheme
investors in the dedicated investment accounts can be remitted back in RMB to the dedicated remittance accounts with which they are paired.
4.5 Hong Kong banks should maintain proper transaction records of
dedicated investment accounts, including the inflow and outflow of funds, trading of wealth management products, interest income, etc., in order to explain and reflect the operation of their Southbound Scheme activities and all the customer assets received or held by the Hong Kong banks. Such records should also be kept for compliance review and auditing by the relevant regulatory authorities on the Mainland and in Hong Kong. Hong Kong banks should clearly explain to customers and obtain their consent to transfer such information to the relevant regulatory authorities during the account opening process. Regarding the record keeping period, Hong Kong banks should comply with the prevailing

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relevant requirements on record keeping.
4.6 Cross-boundary remittances between dedicated remittance accounts
and dedicated investment accounts should be conducted through the Cross-border Interbank Payment System (“CIPS”) . Remittances by other means are not allowed. (See paragraph 5.3 below)
5. Aggregate quota
5.1 Remittances from the Mainland under the Southbound Scheme is
subject to an aggregate quota. The aggregate quota is calculated on a net basis. The cumulative net remittance from the Mainland under the Southbound Scheme should not, at any time, exceed the aggregate quota.
5.2 The aggregate quota for the Southbound Scheme is initially set at
RMB 150 billion.
5.3 Hong Kong banks and their Mainland partner banks should conduct
all cross-boundary remittances related to the Southbound Scheme through the CIPS following payment instructions set out in the Mainland Guidance. The PBoC Guangdong Provincial Branch and Shenzhen Branch will update the usage of the aggregate quota each trading day on their websites.
5.4 The usage of the aggregate quota under the Southbound Scheme is
calculated as follows:
Usage of aggregate quota under the Southbound Scheme = cumulative remittances from the Mainland to Hong Kong and Macao under the Southbound Scheme – cumulative remittances from Hong Kong and Macao back to the Mainland under the Southbound Scheme
5.5 Hong Kong banks should check the usage of the aggregate quota
before accepting remittances under the Southbound Scheme to ensure that the net remittance from the Mainland does not exceed the quota. When the usage of the aggregate quota under the Southbound Scheme reaches its upper limit, Hong Kong banks cannot accept inward remittance from the Mainland and can only

Including making use of the CIPS cross-boundary payment service offered by RMB Participating Banks in Hong Kong.

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proceed with outward remittances back to the Mainland under the Southbound Scheme.
5.6 Hong Kong banks and Mainland partner banks should not conduct
cross-boundary remittances related to the Southbound Scheme through other channels. Prior to providing Southbound Scheme services to customers, Hong Kong banks and Mainland partner banks should explain in detail the possible impact of the restrictions of the aggregate quota on these customers (i.e. instructions for remittances from the Mainland to Hong Kong under the Southbound Scheme may be put on hold as a result of the aggregate quota being used up while remittances from Hong Kong back to the Mainland and investment instructions using funds already remitted to the dedicated investment accounts will not be affected) and the associated risks.
6. Individual investor quota
6.1 Individual investor quota is calculated on a net basis. The net
cumulative remittance from a dedicated remittance account to a dedicated investment account 7 under the Southbound Scheme by each investor should not, at any time, exceed the individual investor quota.
6.2 The individual investor quota for each investor under the
Southbound Scheme is RMB 3 million. If an investor simultaneously selects both a bank and a licensed corporation for investment under Southbound Scheme, the individual investor quota allocated between the bank and the licensed corporation will each be RMB 1.5 million.
6.3 The usage of banks’ individual investor quota under the Southbound
Scheme is calculated as follows:
Usage of banks’ individual investor quota under the Southbound Scheme = cumulative remittances from the Mainland to the dedicated investment accounts of Hong Kong and Macao’s banks under the Southbound Scheme – cumulative remittances from the dedicated investment accounts of Hong Kong and Macao’s banks back to the

Includes the remittance of the Southbound Scheme investor to his/her dedicated investment accounts opened in Hong Kong and Macao.

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Mainland under the Southbound Scheme
7. Eligible wealth management products
7.1 Eligible wealth management products under the Southbound
Scheme include:
Investment products (excluding investment products listed and traded on the Hong Kong Exchanges and Clearing Limited) (1) All funds domiciled in Hong Kong and authorized by the SFC, primarily investing in Greater China equity and assessed as “non-complex” by Hong Kong banks distributing such products; (2) Except for the funds specified in item (1), funds that are domiciled in Hong Kong and authorized by the SFC and are assessed as “low” risk to “medium-high” risk and “non￾complex” by Hong Kong banks distributing such products, excluding high-yield bond funds and single emerging market equity funds; (3) bonds assessed as “low” risk to “medium” risk and “non￾complex” by Hong Kong banks distributing such products; and Deposits 8 (4) RMB, Hong Kong dollar and foreign currency deposits.
8. Product due diligence (“PDD”)
8.1 Hong Kong banks should ensure the products sold are eligible
wealth management products.
8.2 Hong Kong banks should conduct pre-sale and ongoing due
diligence on investment products under the Southbound Scheme. Hong Kong banks should have a thorough understanding of the nature, features and risks of investment products, such as product structure; how they work; the nature of underlying investments; the level of risks they bear; the experience, financial conditions and reputation of product issuers, guarantors and service providers; the relative performance and liquidity of investment products;

Refer to the definition of “deposits” in the Banking Ordinance (“BO”). For the purpose of this Circular, deposits are regarded as wealth management products.

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termination conditions; valuation and unit pricing; fees and charges; and safe custody arrangements, etc. Hong Kong banks may also need to consider market and industry risks, economic and political environments, regulatory restrictions and any other factors which may directly or indirectly impact on the risk return profiles and growth prospects of the investments depending on the nature of the investment products 9 .
8.3 Hong Kong banks should have in place appropriate and effective
mechanisms for assessing the risk and assigning risk ratings for investment products.
8.4 In addition, Hong Kong banks should determine the complexity of
investment products 10. Factors to be considered include:
(i) whether it is a derivative product; (ii) whether a secondary market is available for the investment product at publicly available prices; (iii) whether adequate and transparent information about the investment product is available to investors; (iv) whether there is a risk of losing more than the amount invested; (v) whether any features or terms of the investment product could fundamentally alter the nature or risk of the investment or pay￾out profile or include multiple variables or complicated formulas to determine the return; and (vi) whether any features or terms of the investment product might render the investment illiquid and/or difficult to value.
8.5 Hong Kong banks should establish and implement appropriate and
effective systems and controls to ensure that PDD assessment of the investment product should be fair and balanced. The risk management function of Hong Kong banks should ensure that all risks are well understood and adequately assessed, and all relevant functions (e.g. risk control and legal and compliance) should be consulted as appropriate. Approval from senior management on

9 Please refer to Q4 of the SFC’s Frequently Asked Questions (“FAQs”) on Compliance with Suitability Obligations by Licensed or Registered Persons and paragraph 5.7 of Guidelines on Online Distribution and Advisory Platforms issued by the SFC on the pre-sale and ongoing due diligence. 10 For the definition of complex products, please refer to the SFC’s website and paragraph 5.5 of the SFC Code of Conduct. Among others, complex SFC-authorized funds, in general, refer to derivative funds with a net derivative exposure (according to SFC’s Code on Unit Trusts and Mutual Funds) of more than 50% of its net asset value. Complex bonds refer to bonds with special features (including, but not limited to, perpetual or subordinated bonds, or those with variable or deferred interest payment terms, extendable maturity dates, or those which are convertible or exchangeable or have contingent write down or loss absorption features, or those with multiple credit support providers and structures) and/or bonds comprising one or more special features.

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the PDD assessment result should be obtained, and proper documentation of the PDD work done should be maintained.
8.6 In principle, the assessment conducted by Hong Kong banks on the
risks and complexity of investment products distributed under the Southbound Scheme should not be different from that of the same products distributed through other channels.
8.7 Where a Hong Kong bank, in the course of its ongoing product due
diligence of investment products it distributes, upward adjusts the product risk rating of investment products, the Hong Kong bank should disclose such circumstances to customers who have purchased and are still holding such products. If the Hong Kong bank considers a wealth management product no longer suitable to be an eligible wealth management product under the Southbound Scheme (for example, the product is no longer a “non-complex” product), the Hong Kong bank should stop distributing such wealth management product through the Southbound Scheme. In addition, the Hong Kong bank should disclose the relevant circumstances to customers who have purchased and are still holding such wealth management product, and allow those customers to choose to retain the product in his/her dedicated investment account orsell the wealth management product, and keep a record of the choice of the customer. Nevertheless, no solicitation and recommendation (for example, recommendation on whether the customer should retain or sell the wealth management product) should be involved by the Hong Kong bank in such process 11 .
8.8 Hong Kong banks should also:
 ensure that investors meet the investor eligibility specified in the offering documents of the investment products; and  have appropriate control measures to comply with the Companies (Winding Up and Miscellaneous Provisions) Ordinance or Part IV of the SFO.

Please also refer to paragraphs 9.4(b) and 9.9 of Annex 1.

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9. Promotion and sale
Promotion targeting the Mainland public 12 without a dedicated investment account and/or dedicated remittance account under the Southbound Scheme
9.1 Hong Kong banks may display and provide in Hong Kong
(including the place of business or through appropriate ways such as telephone, video conferences, online channels, etc.):
(i) general information about the Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, and investor protection, and others); (ii) factual representations that the bank provides Southbound Scheme services (including the detailed arrangements for opening a dedicated investment account under the Southbound Scheme to conduct investment; categories of products and relevant services provided by the bank; contact details of the bank; and a representation made in a prescribed manner 13 on the cooperation between the Mainland partner bank and the Hong Kong bank); and (iii) broad description of the scope and categories of wealth management products under the Southbound Scheme, for example, number of products (including number of products under sub-categories, such as number of funds by market or industry), nature, risks, features, fees and charges and range of return, etc. Upon request of an individual Mainland investor, Hong Kong banks may provide factual information on the services and individual products under the Southbound Scheme (including a list of wealth management products offered, offering documents / prospectuses of individual products, product key fact statements), and respond to enquiries on investment services provided by Hong Kong banks and individual products under the Southbound Scheme (e.g. explaining the features (such as underlying assets, past investment performance) and risks of individual products or certain product categories).
9.2 Hong Kong banks may provide information on macroeconomic
conditions, market environment, industry segments, sectoral trends,

Includes non-Southbound Scheme customers of Hong Kong banks / Mainland partner banks. 13 Please refer to the FAQs at the Appendix to this Circular for the prescribed manner.

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general financial information, or general information on the Cross￾boundary WMC, etc., and provide investor education (for example, educate investors how to interpret different types of product documents). Hong Kong banks may send staff to participate (and may participate jointly with staff of partner fund companies that have entered distribution agreements with Hong Kong banks) in briefings and seminars organised by their Mainland partner banks on the Mainland for the Mainland public, presenting the aforementioned information in paragraphs 9.1(i), (ii), (iii) and 9.2. However, Hong Kong banks (and staff of partner fund companies) which do not have qualification for securities investment consultancy business on the Mainland should not provide information 14 which involves investment analysis, forecast or advice on securities and their product values, market trends, etc. in briefings and seminars on the Mainland. Distribution of products to customers with a Southbound Scheme account (including both dedicated investment account and dedicated remittance account)
9.3 Hong Kong banks should conduct transactions and relevant services
with customers through appropriate channels in their place of business. In general, Mainland customers may, after the login process to the online platform or mobile platform of the Hong Kong banks, browse further product information under the Southbound Scheme and conduct transactions directly. When dealing with customers, Hong Kong banks should adequately disclose relevant key information, including product nature and risks. In addition, to assist customers to make investment decision, Hong Kong banks should assess customers’ risk profile 15, and ensure the risk profiling result is valid when conducting transactions of investment products with the customers. Where there is a risk mismatch in such transaction (i.e. the risk rating of the product being higher than the customer’s risk profiling result), the Hong Kong bank should alert the customer, and seek confirmation from the customer as to whether to proceed with such transaction.

14 For the avoidance of doubt, irrespective of whether the target audience is Mainland public or customers with a Southbound Scheme account, Hong Kong banks and their partner fund companies should comply with the requirements in paragraph 9.2 and relevant Mainland laws and regulations when sending staff to attend briefings and seminars on the Mainland. 15 Please refer to Q2 and Q3 of the FAQs on Compliance with Suitability Obligations by Licensed or Registered Persons and paragraph 5.7 of Guidelines on Online Distribution and Advisory Platforms issued by the SFC.

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9.4 (a) Hong Kong banks may, upon an individual customer’s request,
provide services and a list of wealth management products available under the Southbound Scheme and factual information on individual products, and respond to customer enquiries on the investment services and individual products provided by Hong Kong banks under the Southbound Scheme. (b) Hong Kong banks may, upon an individual customer’s request and after considering the customer’s personal circumstances, introduce products which meet the risk appetite of the customer 16 .
9.5 Subject to paragraphs 9.4(b) and 9.9, Hong Kong banks should
establish appropriate policies, procedures and controls with reference to the guidance set out by the SFC on triggering of suitability obligations 17 to ensure that the relevant investment transactions do not involve solicitation or recommendation 18 .
9.6 Hong Kong banks may provide customers with research reports for
reference, but the content thereof should not involve any individual products. Post-sale follow-up
9.7 Hong Kong banks may proactively contact customers to provide
updates on their investment portfolios. They may also provide information on macroeconomic conditions, etc. Hong Kong banks should establish a mechanism to ensure that the process of their interaction with customers does not involve solicitation or recommendation 19; and does not constitute an offer to the Mainland public in relation to investment in individual products or constitute active marketing of the Hong Kong bank’s Cross-boundary WMC services to the Mainland public.

16 Hong Kong banks should comply with the requirements of the HKMA and paragraph 5.2 of the SFC Code of Conduct. 17 Includes SFC’s FAQs on Triggering of Suitability Obligations and FAQs on Guidelines on Online Distribution and Advisory Platforms and Paragraph 5.5 of the SFC Code of Conduct. 18 For transactions that do not involve solicitation or recommendation, Hong Kong banks do not have to conduct suitability assessment for such customers. For the avoidance of doubt, Hong Kong banks should conduct PDD (see section 8 of Annex 1); and conduct risk profiling assessment for customers and alert customers when there is a risk mismatch (see paragraph 9.3 of Annex 1). 19 Please also refer to paragraphs 9.4(b) and 9.9 of Annex 1.

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9.8 Hong Kong banks may refer to the requirements in paragraph 9.4(a)
above in responding to customer enquiries on individual products. Arrangements when Southbound Scheme customers are present in Hong Kong
9.9 For Southbound Scheme customers who are present in Hong Kong,
Hong Kong banks should provide services to such customers in accordance with Hong Kong’s laws and regulatory requirements, as well as ensuring compliance with the requirements set out in this guidance, including but not limited to the requirements on quotas and scope of eligible wealth management products. Hong Kong banks may make solicitation or recommendation to Southbound Scheme customers present in Hong Kong, but should ensure compliance with suitability requirements and make sure that the solicitation or recommendation to such customer is reasonable in all the circumstances. General principle
9.10 The information provided by Hong Kong banks in accordance with
paragraphs 9.1 to 9.4(a) should be factual and fair representations and should not (i) involve solicitation or recommendation; (ii) constitute an offer to the Mainland public in relation to investment in individual products; or (iii) constitute active marketing of the Hong Kong bank’s Cross-boundary WMC services to the Mainland public. When Hong Kong banks send staff to participate in briefings and seminars organised by their Mainland partner banks on the Mainland for the Mainland public as mentioned in paragraph 9.2, the Hong Kong banks should not (i) promote Southbound Scheme services of the bank to Mainland public; (ii) promote or carry on regulated activities, or involve individual wealth management products or circumstances of individual customers; or (iii) market the banking, deposit or wealth management services of the bank to the Mainland public (unless the required licenses / registrations for relevant banking service, deposit-taking service or regulated activities have been obtained). For detailed promotion and sale arrangements, please refer to the FAQs at the Appendix to this Circular.

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10. Controls and Supervision 20
10.1 Hong Kong banks should conduct a thorough assessment before
embarking on Southbound Scheme activities to ensure that the relevant parties (including the Board of Directors or its designated committees and senior management) fully understand the risks involved and have sufficient manpower, expertise and resources (finance, risk management, compliance, etc.) to engage in the relevant business and manage the risks involved.
10.2 The senior management of Hong Kong banks should adequately
supervise the operations under the Cross-boundary WMC. This includes putting in place appropriate systems and controls, as well as appropriate monitoring and audit mechanisms to ensure compliance with applicable laws and regulations and timely submission of complete and accurate management information reports to the senior management, so that the senior management stays vigilant of any risks or non-compliance. Executive Officers should directly supervise and be responsible for their Hong Kong banks’ operations under the Cross-boundary WMC.
10.3 The compliance department of Hong Kong banks should ensure that
the Hong Kong banks comply with the statutory and regulatory requirements and codes of conduct applicable to the Cross-boundary WMC, monitor and review their compliance status, and regularly report compliance matters to the senior management.
11. Non-compliance and breaches
11.1 The HKMA will conduct on-site examinations and off-site
surveillances on Hong Kong banks’ Southbound Scheme business. Where there are non-compliance or breaches by Hong Kong banks of requirements set out in this guidance or applicable law, regulations and codes of conduct in their course of business under the Southbound Scheme, the HKMA and the PBoC will consider the non-compliance and breaches, and suspend the relevant banks’ eligibility to engage in the Southbound Scheme or the Cross￾boundary WMC. In the event of such suspension, the Hong Kong bank concerned should handle the investments and assets of existing Southbound Scheme customers in accordance with the HKMA’s instructions, including but not limited to retaining the invested

20 The HKMA’s Supervisory Policy Manual (“SPM”) module IC-1 “Risk Management Framework”.

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wealth management products until redemption upon maturity and remittance of the relevant funds back to the Mainland upon maturity or withdrawal of the investments within a specified time limit.
11.2 The HKMA and the SFC may take supervisory and/or enforcement
actions against the relevant Hong Kong banks and/or their relevant personnel in respect of non-compliance or breaches of statutory and regulatory requirements and codes of conduct applicable to the Cross-boundary WMC.
11.3 If a Hong Kong bank becomes aware of any non-compliance or
breach by an individual investor of any requirements set out in this guidance or relevant regulations (for example becomes aware of an investor possessing more than one dedicated remittance / Hong Kong investment account), it should file a report with the HKMA immediately. The HKMA and the PBoC will review the relevant non-compliance or breach and instruct the Hong Kong bank and the Mainland partner bank concerned to take follow-up action, including but not limited to requiring it to suspend the investor from engaging in the Southbound Scheme; to dispose of the products held by the investor and terminate his/her dedicated investment account and dedicated remittance account; or allow the investor to hold the products until redemption at maturity while forbidding investment in any new products. Hong Kong banks should ensure that the relevant customer agreements are contractually effective in addressing the above situation and should clearly explain the situation to the customer.
12. Investor protection and complaint handling mechanism
12.1 The transactions carried out by Southbound Scheme investors via
their dedicated investment accounts are subject to the protection of Hong Kong’s laws and regulations and regulatory regime.
12.2 Should a Southbound Scheme investor file a complaint (including
complaints involving wealth management products and the sale process) to a Hong Kong bank, the Hong Kong bank should handle the complaint in accordance with the HKMA’s SPM module IC-4 “Complaint Handling Procedure”. The SPM module stipulatesthat banks in Hong Kong should put in place appropriate management controls as well as appropriate and effective complaint handling procedures, to ensure that complaints are handled fairly, consistently and promptly, and that the bank is able to identify and remedy any

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recurring problems, as well as any specific issues. Hong Kong banks should also handle complaints within the time limit prescribed in the SPM module IC-4.
12.3 Hong Kong banks should provide cross-boundary complaint
channels for Southbound Scheme investors to facilitate the cross￾boundary submission and follow-up of complaints by investors. Such channels may include online platforms, toll-free hotlines, emails, instant messaging applications and others.
12.4 Regarding complaints about cross-boundary funds remittances
under the Southbound Scheme, Hong Kong banks should refer the complaint to the Mainland partner banks for follow-up and assist investors as appropriate. After referral of any complaint, Hong Kong banks should take appropriate follow-up actions to ensure that the complaint is duly handled and addressed by the relevant Mainland partner banks within a reasonable time.
13. Staff’s knowledge and training 21
13.1 Hong Kong banks should ensure that their relevant staff members
engaged in Southbound Scheme activities are properly registered / licensed, including assigning relevant individuals to handle the opening of dedicated investment accounts under the Southbound Scheme, respond to enquiries in relation to Southbound Scheme’s operation, product scope, and other relevant matters, as well as distribution of investment products, etc.
13.2 The Board of Directors and senior management of Hong Kong banks
are responsible for ensuring the competence and ethics of their staff members, including monitoring and assessing their knowledge, skills and performance; continuously providing staff members with adequate, appropriate and timely training and guidance, such as training on the operation, sale process, product knowledge, complaint handling mechanism, market information and regulatory requirements of the two jurisdictions in relation to the Cross￾boundary WMC; ensuring that staff members are competent at all times; and addressing any shortcomings in a timely manner.

21 The HKMA’s SPM module CG-6 “Competence and Ethical Behaviour”.

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14. Data reporting and submission
14.1 Hong Kong banks should collect, compile and report data or
information on Southbound Scheme activities as requested by the HKMA, including but not limited to information on accounts, cross￾boundary funds remittance and transfer, sales of wealth management products, product categories, product lists, product risk ratings and their changes (if any), customer complaints and compliance with relevant regulatory requirements, etc.
14.2 Hong Kong banks should designate at least two staff members as the
contact persons for liaising with the HKMA.
15. Personal data
15.1 Hong Kong banks should handle the personal data of their customers
in accordance with the Personal Data (Privacy) Ordinance at all times.

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Regulatory Requirements on the Northbound Scheme The Northbound Scheme refers to eligible Hong Kong investors investing in eligible wealth management products offered by banks on the Mainland via designated channels. An eligible Hong Kong investor should open a bank account in Hong Kong with cross-boundary remittance function as the remittance account under the Northbound Scheme (“dedicated remittance account”). Eligible banks on the Mainland should have an account on the Mainland with investment function as the investment account under the Northbound Scheme (“dedicated investment account”) for an eligible Hong Kong investor, and pair it with his/her dedicated remittance account in Hong Kong, with closed-loop management of funds flow between the accounts. Subsequently, such Hong Kong investor will be able to remit funds through the dedicated remittance account in Hong Kong to the dedicated investment account on the Mainland and purchase eligible wealth management products offered by the bank on the Mainland via the dedicated investment account.

1. Eligible banks
   1.1 Registered institutions registered under the SFO for carrying on
   Type 1 regulated activity (dealing in securities), and engaging in retail banking or private banking business (“Hong Kong banks”) may embark on Northbound Scheme activities in accordance with this Circular.
   1.2 To embark on Northbound Scheme activities, a Hong Kong bank
   should partner with an eligible Mainland bank and sign a cooperation agreement on Cross-boundary WMC business setting out clearly each party’s responsibilities and obligations (including that the Mainland partner bank should comply with the relevant requirements in this Circular). Eligible Mainland banks are financial institutions of the Mainland banking industry in the GBA which meet the criteria set by Mainland regulatory authorities (“Mainland partner banks”). A Hong Kong bank may at the same time partner with more than one Mainland partner bank to embark on Northbound Scheme activities.
   1.3 Under the Northbound Scheme, Hong Kong banks undertake the
   cross-boundary funds remittances and transfers through dedicated remittance accounts, and Mainland partner banks undertake the sale of wealth management products, including the opening of dedicated

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investment accounts for eligible Hong Kong investors. Hong Kong banks intending to embark on Northbound Scheme activities are not required to seek approval from the HKMA, but should notify and submit a self-assessment to the HKMA at least one month prior to the launch of such activities. The HKMA may provide comments or request for supplementary information from the banks as needed. After obtaining “no objection” notification from the HKMA, Hong Kong banks can embark on such activities (including starting to display and/or provide factual representations that the bank provides Northbound Scheme services). Before officially launching Cross￾boundary WMC activities and embarking on Northbound Scheme activities with the Mainland partner banks, Hong Kong banks should ensure that the Mainland partner bank has been confirmed by the relevant Mainland regulatory authorities that it is eligible for providing Cross-boundary WMC services. The HKMA and the PBoC will have reciprocal notification arrangements on the particulars of banks embarking on Cross-boundary WMC activities in their respective jurisdictions.
1.4 Hong Kong banks intending to exit their Northbound Scheme
activities or have material changes to their Northbound Scheme activities (for example, switch to another Mainland partner bank) should devise a plan for the exit or relevant changes, including but not limited to arrangements on affected customers (including arrangements for notifying affected customers and arrangements for the funds of their existing customers) (if applicable), the timetable for arrangements of the exit or relevant changes, relevant control measures etc., and consult the HKMA in advance on their plans for the exit or relevant changes.
2. Eligible investors
2.1 All Hong Kong residents who hold a Hong Kong identity card,
including permanent and non-permanent residents, who are assessed by Hong Kong banks as not being a VC can participate in the Northbound Scheme. Northbound Scheme investors should invest in their personal capacity, but not as joint-name or corporate customers, and should not authorize a third party to operate the account.
2.2 Hong Kong banks are responsible for verifying Hong Kong
customers’ eligibility for participating in the Northbound Scheme. Hong Kong banks should conduct customer due diligence (“KYC”)

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on all customers according to the prevailing requirements. For details, please refer to the section on “Account opening arrangements”.
3. Account opening arrangements
3.1 After verifying a Hong Kong investor’s eligibility for participating
in the Northbound Scheme, Hong Kong banks should open a dedicated remittance account under the Northbound Scheme, or designate an account maintained by the investor with the Hong Kong bank as a dedicated remittance account 1 . The Hong Kong bank should confirm (either in writing or through an internal system) with its partnering Mainland partner bank that it has verified the eligibility of the investor concerned for the Northbound Scheme as well as confirmed the particulars of the investor, such as his/her dedicated remittance account number.
3.2 Hong Kong banks should conduct customer due diligence for
customers opening a dedicated remittance account according to the prevailing requirements.
3.3 Each eligible investor under the Northbound Scheme should apply
to newly open a dedicated investment account under the Northbound Scheme with the Mainland partner bank, or designate his/her account maintained with the same Mainland partner bank as a dedicated investment account, in accordance with the relevant requirements on the Mainland 2 . To facilitate the account opening process in person, Mainland partner banks can offer online channels for customers to submit information, or Hong Kong banks can, in accordance with customers’ instructions, assist customers to fill in the required account opening documents 3 beforehand and transfer such documents to the Mainland partner banks on the customers’ behalf. Customers can then travel to the Mainland to complete the account opening

1 Under the premise of ensuring that the operation of the dedicated remittance account complies with the requirements of closed-loop fund flow and individual investor quota, the dedicated remittance account under the Northbound Scheme may be used for other banking services outside the Northbound Scheme. 2 For details, please refer to the Mainland Guidance. If applicable, the account opening documents should clearly state that the subject Mainland partner bank is not an authorized institution (“AI”) under the Banking Ordinance (“BO”) and is not subject to the supervision of the Monetary Authority, and that the Mainland partner bank cannot carry on in Hong Kong any banking business or business of taking deposits.

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procedures after preliminary approval by the Mainland partner banks.
3.4 Each Hong Kong resident holding a Hong Kong identity card can
open only one dedicated remittance account under the Northbound Scheme with one Hong Kong bank. Hong Kong banks and their Mainland partner banks should take corresponding measures to ascertain that the investors have not conducted any Northbound Scheme activities with other banks.
3.5 Prior to opening dedicated remittance accounts under the
Northbound Scheme for customers, Hong Kong banks should provide sufficient disclosure and proper explanation to customers to ensure that they understand the requirements of the Northbound Scheme (including the respective roles and responsibilities of Hong Kong banks and Mainland partner banks, closed-loop fund flow and two-way funds transfer requirements, complaint handling mechanism, etc.), investor responsibility, associated risks (including exchange rate risk and risks under quota management, etc.), disclosure of information to relevant regulatory authorities and handling of non-compliance or breaches by investors upon identification (see section on “Non-compliance and breaches”). Hong Kong banks should remind customers to understand the rules and procedures relevant to transactions in the Mainland wealth management product market, and consider their own circumstances before making investment decisions.
3.6 Hong Kong banks should not provide Cross-boundary WMC
services to VCs. Prior to opening a dedicated remittance account for a customer, Hong Kong banks should conduct an assessment according to the relevant guidelines 4 issued by the HKMA to determine whether the customer is a VC. After opening a dedicated remittance account, if a customer becomes a VC due to a change in personal circumstances, Hong Kong banks should take follow-up actions. In general, the customer can keep or terminate such dedicated remittance account. If the customer chooses to keep such dedicated remittance account, Hong Kong banks can continue providing Northbound Scheme services to the customer, and should notify the Mainland partner banks to facilitate them in making any appropriate arrangements.

4 For details, please refer to section (A)(III.2) of Annex 1 to the circular issued by the HKMA on 25 September 2019 entitled “Investor Protection Measures in respect of Investment, Insurance and Mandatory Provident Fund Products”. Hong Kong banks should not accept a “VC for non-complex investment products” as an investor under the Northbound Scheme.

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3.7 After receiving confirmation from a Mainland partner bank of the
successful opening of a dedicated investment account, the Hong Kong bank should pair the investor’s dedicated remittance account with his/her dedicated investment account maintained with the Mainland partner bank to form a one-to-one matching, thereby ensuring a closed-loop funds flow. In case an investor fails to open a dedicated investment account, he/she may still retain the remittance account, and use such account for other purposes.
4. Cross-boundary remittance
4.1 Closed-loop fund flow: Hong Kong banks should ensure that funds
remitted from an investor’s dedicated remittance account to the Mainland will only be credited to the dedicated investment account with which such dedicated remittance account is paired, and funds remitted from the Mainland can only be from the paired dedicated investment account. Fund transfers between a dedicated remittance account and other Mainland accounts are not allowed 5 .
4.2 Cross-boundary Renminbi (“RMB”) remittance to the Mainland
under the Northbound Scheme is not subject to the daily maximum quota per person for individual Hong Kong and Macao residents’ inward remittance to bank accounts under the same name on the Mainland.
4.3 Cross-boundary remittance should be conducted in RMB: All
cross-boundary remittances between dedicated remittance accounts and dedicated investment accounts should be conducted in RMB. That means, dedicated remittance accounts maintained by Hong Kong banks should only conduct cross-boundary outward remittance of RMB funds or receive inward remittance of RMB funds. Dedicated investment accounts maintained by Mainland partner banks should only conduct cross-boundary outward remittance of RMB funds to and receive inward remittance of RMB funds from dedicated remittance accounts maintained by Hong Kong banks.
4.4 Both the principal and investment proceeds of Northbound Scheme

5 For avoidance of doubt, under the circumstances that do not involve cross-boundary remittance with Mainland account, the customer can remit funds from the dedicated remittance account to other accounts, or remit funds from other accounts to the dedicated remittance account under the Northbound Scheme.

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investors in the dedicated investment accounts can be remitted back in RMB to the dedicated remittance accounts with which they are paired.
4.5 Hong Kong banks should maintain proper records of the flows of
funds into and out of dedicated remittance accounts for compliance review and auditing by the relevant regulatory authorities on the Mainland and in Hong Kong. Hong Kong banks should clearly explain to customers and obtain their consent to transfer such information to the relevant regulatory authorities during the account opening process. Regarding the record keeping period, Hong Kong banks should comply with the prevailing relevant requirements on record keeping.
4.6 Cross-boundary remittances between dedicated remittance accounts
and dedicated investment accounts should be conducted through the Cross-border Interbank Payment System (“CIPS”) . Remittances by other means are not allowed. (See paragraph 5.3 below)
5. Aggregate quota
5.1 Remittance to the Mainland under the Northbound Scheme is subject
to an aggregate quota. The aggregate quota is calculated on a net basis. The cumulative net remittance to the Mainland through the Northbound Scheme should not, at any time, exceed the aggregate quota.
5.2 The aggregate quota for the Northbound Scheme is initially set at
RMB 150 billion.
5.3 Hong Kong banks and their Mainland partner banks should conduct
all cross-boundary remittances related to the Northbound Scheme through the CIPS following payment instructions set out in the Mainland Guidance. The PBoC Guangdong Provincial Branch and Shenzhen Branch will update the usage of the aggregate quota each trading day on their websites.
5.4 The usage of aggregate quota under the Northbound Scheme is
calculated as follows:

Including making use of the CIPS cross-boundary payment service offered by RMB Participating Banks in Hong Kong.

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Usage of aggregate quota under the Northbound Scheme = cumulative remittances from Hong Kong and Macao to the Mainland under the Northbound Scheme – cumulative remittances from the Mainland back to Hong Kong and Macao under the Northbound Scheme
5.5 Hong Kong banks should check the usage of the aggregate quota
before proceeding with outward remittance under the Northbound Scheme to ensure that the net remittance to the Mainland does not exceed the quota. When the usage of the aggregate quota under the Northbound Scheme reaches its upper limit, Hong Kong banks cannot proceed with outward remittance from Hong Kong to the Mainland and can only accept inward remittance back to Hong Kong under the Northbound Scheme.
5.6 Hong Kong banks and Mainland partner banks should not conduct
cross-boundary remittances related to the Northbound Scheme through other channels. Prior to providing Northbound Scheme services to customers, Hong Kong banks and Mainland partner banks should explain in detail the possible impact of the restrictions of the aggregate quota on these customers (i.e. instructions for funds remittances from Hong Kong to the Mainland under the Northbound Scheme may be put on hold as a result of the aggregate quota being used up while remittances from the Mainland to Hong Kong and investment instructions using funds already remitted to the dedicated investment accounts will not be affected) and the associated risks.
6. Individual Investor Quota
6.1 Individual investor quota is calculated on a net basis. The net
cumulative remittance from a dedicated remittance account to a dedicated investment account under the Northbound Scheme by each investor should not, at any time, exceed the individual investor quota.
6.2 The individual investor quota for each investor under the
Northbound Scheme is RMB 3 million. If the investor simultaneously selects both a bank and a securities firm for investment under the Northbound Scheme, the individual investor quota allocated between the bank and the securities firm will be RMB 1.5 million each.
6.3 The usage of bank’s individual investor quota under the Northbound

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Scheme is calculated as follows:
Usage of bank’s individual investor quota under the Northbound Scheme = cumulative remittances from the dedicated remittance account of Hong Kong bank to the Mainland under the Northbound Scheme – cumulative remittances to the dedicated remittance account of Hong Kong bank from the Mainland under the Northbound Scheme
6.4 Hong Kong banks should monitor cross-boundary remittances to and
from dedicated remittance accounts. Prior to proceeding with any outward remittance to an investor’s dedicated investment account on the Mainland, Hong Kong banks should confirm that the investor’s net cumulative remittance to the Mainland does not exceed the bank’s individual investor quota. If the amount that an investor plans to remit exceeds his/her remaining individual investor quota, Hong Kong banks should refuse to remit such funds or only remit the amount of the remaining individual investor quota.
7. Eligible wealth management products
7.1 Eligible wealth management products under the Northbound
Scheme mainly include RMB-denominated deposit products; public fixed income wealth management products and equity wealth management products, with risk rating of “R1” to “R3” (excluding wealth management products for the purpose of cash management); and public securities investment funds with risk rating “R1” to “R4” (excluding commodity futures funds), distributed by banks. For details, please refer to the implementation arrangements issued by the Mainland regulatory authorities.
8. Promotion and sale
8.1 A Hong Kong bank may through appropriate ways in Hong Kong,
display and provide factual representations to the public (including non-Northbound Scheme customers) that the bank provides the Northbound Scheme services (including the operational arrangements, product categories, detailed operational arrangements of the opening of dedicated remittance account under the Northbound Scheme, services provided by the bank under the Northbound Scheme, contact details of the bank, and a

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representation made in a prescribed manner 7 on the cooperation between the Hong Kong bank and the Mainland partner bank) and general information about the Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, investor protection, etc.). The contents of the promotional materials should be factual and fair representations and should not (i) involve solicitation or recommendation, (ii) constitute an offer to the Hong Kong public in relation to investment in individual products; or (iii) constitute active marketing of the Mainland partner bank’s Cross-boundary WMC services to the Hong Kong public 8 .
8.2 Hong Kong banks may organise briefings and seminars in Hong
Kong for the Hong Kong public to introduce the content set out in paragraph 8.1 above, and information on macroeconomic conditions, market environment, industry segments, sectoral trends or general financial information, etc.
8.3 For detailed promotion and sale arrangements, please refer to the
FAQs at the Appendix to this Circular.
9. Controls and Supervision 9
9.1 Hong Kong banks should conduct a thorough assessment before
embarking on Northbound Scheme activities to ensure that the relevant parties (including the Board of Directors or its designated committees and senior management) fully understand the risks involved and have sufficient manpower, expertise and resources (finance, risk management, compliance, etc.) to engage in the relevant business and manage the risks involved.
9.2 The senior management of Hong Kong banks should adequately
supervise the operations under the Cross-boundary WMC. This includes putting in place appropriate systems and controls, as well as appropriate monitoring and audit mechanisms to ensure compliance with applicable laws and regulations and timely submission of complete and accurate management information

7 Please refer to the FAQs at the Appendix to this Circular for the prescribed manner. In respect of an offer to the Hong Kong public in relation to investment in individual products, please refer to section 103 of the SFO. In respect of the restriction of active marketing to the Hong Kong public of any services which constitute a regulated activity under the SFO, please refer to section 115 of the SFO. 9 The HKMA’s Supervisory Policy Manual (“SPM”) module IC-1 “Risk Management Framework”.

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reports to the senior management, so that the senior management stays vigilant of any risks or non-compliance. Executive Officers should directly supervise and be responsible for their Hong Kong banks’ operations under the Cross-boundary WMC.
9.3 The compliance department of Hong Kong banks should ensure that
the Hong Kong banks comply with the statutory and regulatory requirements and codes of conduct applicable to the Cross-boundary WMC, monitor and review their compliance status, and regularly report compliance matters to the senior management.
10. Non-compliance and breaches
10.1 The HKMA will conduct on-site examinations and off-site
surveillances on Hong Kong banks’ Northbound Scheme business. Where there are non-compliance or breaches by Hong Kong banks of the requirements set out in this guidance or applicable law, regulations and codes of conduct in their course of business under the Northbound Scheme, the HKMA and the PBoC will consider the non-compliance and breaches, and suspend the relevant banks’ eligibility to engage in the Northbound Scheme or the Cross￾boundary WMC. In the event of such suspension, the Hong Kong bank concerned should handle the funds of existing Northbound Scheme customers in accordance with the HKMA’s instructions.
10.2 The HKMA and the SFC may take supervisory and/or enforcement
actions against the relevant Hong Kong banks and/or their relevant personnel in respect of non-compliance or breach of statutory and regulatory requirements and codes of conduct applicable to the Cross-boundary WMC.
10.3 If a Hong Kong bank becomes aware of any non-compliance or
breach by an individual investor of any requirements set out in this guidance or relevant regulations (for example becomes aware of an investor possessing more than one dedicated remittance/investment account), it should file a report to the HKMA immediately. The HKMA and the PBoC will review the relevant non-compliance or breach and instruct the Hong Kong bank and the Mainland partner bank concerned to take follow-up action, including but not limited to requiring it to suspend the investor from engaging in the Northbound Scheme; to dispose of the products held by the investor and terminate his/her dedicated investment account and dedicated remittance account; or allow the investor to hold the products until

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redemption at maturity while forbidding investment in any new products. Hong Kong banks should ensure that the relevant customer agreements are contractually effective in addressing the above situation and should clearly explain the situation to the customer.
11. Investor protection and complaint handling mechanism
11.1 The transactions carried out by the Northbound Scheme investors
via their dedicated investment accounts are subject to the protection of the Mainland laws and regulations and regulatory regime.
11.2 Hong Kong banks should handle complaints involving cross￾boundary funds remittances under the Northbound Scheme in
accordance with the HKMA’s SPM module IC-4 “Complaint Handling Procedure”. The SPM module stipulates that banks in Hong Kong should put in place appropriate management controls as well as appropriate and effective complaint handling procedures, to ensure that complaints are handled fairly, consistently and promptly, and that the bank is able to identify and remedy any recurring problems, as well as any specific issues. Hong Kong banks should also handle complaints within the time limit prescribed in the SPM module IC-4.
11.3 Regarding complaints about wealth management products and
services under the Northbound Scheme, Hong Kong banks should refer the complaints to the Mainland partner banks for follow-up and assist investors as appropriate. After referral of any complaint, Hong Kong banks should take appropriate follow-up actions to ensure that the complaint is duly handled and addressed by the relevant Mainland partner banks within a reasonable time.
12. Staff’s knowledge and training 10
12.1 Hong Kong banks should ensure that their relevant staff members
engaged in Northbound Scheme activities are properly registered / licensed. Hong Kong banks should assign relevant individuals to handle the opening of dedicated remittance accounts under the Northbound Scheme, respond to enquiries in relation to Northbound Scheme’s operation, product scope, and other relevant matters. Nevertheless, in general, it is not a must that customers’ remittance

10 The HKMA’s SPM module CG-6 “Competence and Ethical Behaviour”.

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instructions under the Northbound Scheme be handled by relevant individuals only.
12.2 The Board of Directors and senior management of Hong Kong banks
are responsible for ensuring the competence and ethics of their staff members, including monitoring and assessing their knowledge, skills and performance; continuously providing staff members with adequate, appropriate and timely training and guidance, such as training on the operation, complaint handling mechanism and regulatory requirements of the two jurisdictions in relation to the Cross-boundary WMC; ensuring that staff members are competent at all times; and addressing any shortcomings in a timely manner.
13. Data reporting and submission
13.1 Hong Kong banks should collect, compile and report data or
information on Northbound Scheme activities as requested by the HKMA, including but not limited to information on account opening, cross-boundary funds remittance and transfer, customer complaints and compliance with relevant regulatory requirements, etc.
13.2 Hong Kong banks should designate at least two staff members as the
contact persons for liaising with the HKMA.
14. Personal Data
14.1 Hong Kong banks should handle the personal data of their customers
in accordance with the Personal Data (Privacy) Ordinance at all times.

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Appendix
Frequently Asked Questions on the
Cross-boundary Wealth Management Connect in the Guangdong￾Hong Kong-Macao Greater Bay Area General Q1: Is it necessary for a Hong Kong bank and its partnering Mainland partner bank to be of the same group? A1: No. Q2: Can a Hong Kong bank partner with different Mainland partner banks under the Southbound Scheme and Northbound Scheme, respectively? A2: Yes. Q3: How should Hong Kong banks present the cooperation with the Mainland partner banks? A3: A Hong Kong bank may present the cooperation with its partnering Mainland partner bank for the purposes of the Cross-boundary WMC in the following manner:
(1) the Hong Kong bank may, by way of statement of fact, disclose the name and basic contact information (e.g. general enquiry or hotline number, branch address, website address, etc.) of its partnering Mainland partner bank on the Hong Kong bank’s public website and promotional materials; (2) the Hong Kong bank may incorporate a website or a hyperlink (place only the relevant website address of the Mainland partner bank (without a hyperlink) if providing promotional materials through media) to the website of its Mainland partner bank when mentioning the term of “Mainland partner bank” on the Hong Kong bank’s website and promotional materials, with clear indication that the Hong Kong bank has partnered with such Mainland partner bank for the purposes of the Southbound and/or Northbound Scheme; and (3) the Hong Kong bank may place a hyperlink on its promotional materials that links to the webpage of the Hong Kong Monetary

Appendix
Authority (“HKMA”) on the Cross-boundary WMC, with the following statement: “Further information is available on the website of the Hong Kong Monetary Authority.”. Hong Kong banks and Mainland partner banks should ensure that representations about the Northbound Scheme would not result in breach of the restrictions on carrying on business in regulated activities as set out in Sections 114 and 115 of the Securities and Futures Ordinance (“SFO”) by Mainland partner banks, or result in Hong Kong banks effectively becoming the local representative offices of Mainland partner banks in Hong Kong for the purposes of
section 46 of the Banking Ordinance (“BO”). As such, Hong Kong
banks should not act as or hold itself out as the representative or agent of the Mainland partner bank in Hong Kong. Q4: Where can investors obtain the relevant information if they are interested in participating in the Southbound/Northbound Scheme? A4: Investors may directly browse the websites of banks providing Southbound/Northbound Scheme services, visit the business premises of relevant banks or call the enquiry hotlines of relevant banks for information on their services under the Southbound/Northbound Scheme. The HKMA will also publish relevant information of the Cross￾boundary WMC on its webpage, including the operation of the Cross-boundary WMC, eligible investors, general rights and obligations etc. Moreover, the HKMA webpage will provide the list of Hong Kong banks and Mainland partner banks participating in the Cross-boundary WMC. Q5: If the wealth management product falls within the scope specified in section 7 of Annex 1/2, does it require further authorization/approval by relevant Mainland/Hong Kong regulatory authorities before being included as eligible products under the Southbound/Northbound Scheme? A5: No.

Appendix
Q6: If a Mainland or Hong Kong fund is an eligible wealth management product under the Cross-boundary WMC, and the fund has been authorized according to the Mainland-Hong Kong Mutual Recognition of Funds (“MRF”) in Hong Kong or Mainland for sale, how to calculate the utilisation of quota when an investor subscribes or redeems this type of fund under the Cross-boundary WMC? A6: Cross-boundary WMC and MRF are two independent connect schemes, each of them is subject to respective quota restriction. If an investor subscribes or redeems this type of fund under Cross￾boundary WMC, the relevant transaction will be restricted by quota under Cross-boundary WMC only (including aggregate quota and individual investor quota); the quota restriction under MRF is not applicable. Q7: Can an authorized institution (“AI”) incorporated overseas (i.e. AIs operating in Hong Kong as a foreign bank branch) participate in Cross-boundary WMC to provide services to the Mainland public? A7: Foreign bank branches registered under the SFO for carrying on Type 1 regulated activity (dealing in securities), and engaging in private banking business are eligible to participate in the Cross￾boundary WMC. The HKMA circular of 12 June 2012 has defined the monetary threshold for “private banking customer”, which includes investable assets under the AI’s management threshold of USD 1 million, or USD 3 million investable assets in any banks / institutions. Private banks therefore can take up Mainland customers who satisfy the aforementioned monetary threshold, notwithstanding the Cross￾boundary WMC individual investor quota of RMB 3 million. In addition, the Cross-boundary WMC will be introduced as a pilot and subject to review, including the individual investor quota, after more experience is gathered from the operation of this scheme. The implication of the activities under the Cross-boundary WMC with regard to the requirement for an AI conducting a significant volume of retail business to be locally incorporated will have to be observed.

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Q8: Can Hong Kong banks follow the existing mechanism to engage staff of Mainland partner banks on a temporary basis to perform tasks relevant to the Cross-boundary WMC? A8: Where a Hong Kong bank intends to engage staff of its Mainland partner bank on a temporary basis to perform regulated functions in regulated activities, it should satisfy the requirements of the temporary engagement mechanism set out in the HKMA’s Supervisory Policy Manual (“SPM”) module SB-1 “Supervision of Regulated Activities of SFC-Registered Authorized Institutions”, including ensuring that temporarily engaged staff are fit and proper to be so engaged for the regulated activity. Provided that the relevant registration requirements are complied with, staff who are temporarily engaged should act as a representative of the Hong Kong bank. The Hong Kong bank is responsible for the conduct of such staff. Southbound Scheme Q9: It is a prevailing requirement that Mainland residents should possess a valid 3-month visa for opening a Hong Kong account. Are Hong Kong banks required to comply with such requirement when opening a Southbound Scheme dedicated investment account for Mainland residents? A9: The relevant visa requirement is not applicable to opening Southbound Scheme dedicated investment accounts in Hong Kong (including account opening by attestation or in person). Q10: Can Mainland residents open a dedicated investment account with Hong Kong banks before opening a dedicated remittance account with Mainland banks? A10: Hong Kong banks and Mainland partner banks can handle this with flexibility, for example, to complete account opening formalities for the dedicated investment account first, then enable the dedicated investment account only after the opening of and pairing with the dedicated remittance account, and the establishment of closed-loop funds management between the accounts.

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Q11: What measures can be taken by Hong Kong banks to ascertain that investors have not conducted Southbound Scheme activities with other Hong Kong banks? A11: Applicable measures include requesting investors to declare that they do not hold any dedicated investment account with other Hong Kong banks under the Southbound Scheme. Mainland regulatory authorities will also conduct screening afterwards. In the event that repeated account opening is identified, Hong Kong banks should follow up accordingly upon receipt of relevant notification. Q12: Can Hong Kong banks, through their Mainland partner banks, complete the relevant disclosure related to opening of dedicated investment accounts under the Southbound Scheme, assessment on vulnerable customers (“VCs”) and risk profiling assessment? A12: Regarding the disclosure related to opening of dedicated investment accounts under the Southbound Scheme, assessment on VCs and risk profiling assessment, Hong Kong banks should comply with this Circular and all relevant prevailing regulatory requirements. In particular, the customer relationship of the dedicated investment accounts under the Southbound Scheme lies between Hong Kong banks and customers. Hence, Hong Kong banks are responsible for relevant disclosure related to dedicated investment accounts under the Southbound Scheme, including the risk disclosure statements mentioned in paragraph 6 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission (“SFC Code of Conduct”) issued by the Securities and Futures Commission (“SFC”). According to paragraph 6.1 of the SFC Code of Conduct, where an account opening procedure other than a face-to-face approach (including account opening by attestation) is used, the covering correspondence should specifically direct the customer’s attention to the appropriate risk disclosure statements and customer acknowledgement should be sought. It will not be necessary for the “declaration by staff” section to be signed. As to the opening of Southbound Scheme dedicated investment accounts, tasks performed by the Mainland partner banks on customers should be limited to general administrative tasks, for example, in respect of account opening by attestation, verification of client identity, sighting of identification documents and signing of client agreement, or providing general information related to the Cross-boundary WMC.

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Hong Kong banks are also responsible for the VC assessment and risk profiling assessment. Hong Kong banks should conduct the relevant assessments through appropriate channels, for example, online, phone, and Mainland partner banks assisting in collecting relevant customer information (e.g. the customer’s ability to make investment decisions may be impacted due to disabilities) and then passing to Hong Kong banks for conducting relevant assessments. Hong Kong banks should comply with this Circular and all relevant prevailing regulatory requirements, including relevant requirements on audio-recording arrangement for risk profiling assessment (if applicable) and record retention, etc. Q13: Funds domiciled in Hong Kong and authorized by the SFC (assessed as “non-complex” by Hong Kong banks distributing such products and fulfilling the specified requirements set out in
Section 7 of Annex 1) is one of the eligible wealth management
products under the Southbound Scheme. Are Mandatory Provident Funds (“MPF”), Approved Pooled Investment Funds and Unlisted Unit/Class of Exchange Traded Funds (“ETFs”) included? A13: Approved Pooled Investment Funds distributable to retail investors and Unlisted Unit/Class of ETFs, meeting all requirements of eligible wealth management products under the Southbound Scheme (that are, being domiciled in Hong Kong, authorized by the SFC, and assessed as “non-complex” by Hong Kong banks distributing such products and fulfilling the specified requirements set out in Section 7 of Annex 1), are eligible wealth management products under the Southbound Scheme. However, due to the nature of the MPF, MPF is not included as one of the eligible wealth management products under the Southbound Scheme. Q14: Are “structured deposits” included as one of the eligible wealth management products under the Southbound Scheme? (added on 25 June 2024) A14: After discussion with other relevant regulatory authorities, Standardised Non-SFO-regulated Structured Deposit that is principal-protected and assessed as “low” risk to “medium” risk by the Hong Kong bank distributing such products can be included as the eligible wealth management product under the Southbound Scheme. This type of product is consistent with the principle of

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proper risk controls and ensuring proper protection for investors under the Cross-boundary WMC. Standardised Non-SFO￾regulated Structured Deposit is defined as: a deposit with an AI that falls within the meaning of “currency-linked instrument” / “interest rate-linked instrument” under Part 1 of Schedule 1 to the SFO; makes reference to a single major currency pair (HK dollar, US dollar, Euro, UK Pound Sterling, Australian dollar, New Zealand dollar, Canadian dollar, Swiss Franc, Japanese Yen, Renminbi (both CNY and CNH) and Singapore dollar) or interest rate only; is not leveraged; and does not consist of a series of contracts or a series of settlements, where customers are obliged to purchase / sell / settle periodically within a specified period. For detailed definition of Standardised Non-SFO-regulated Structured Deposit, please refer to the circular issued by the HKMA on 30 October 2018 entitled “Requirements Applicable to Online and Offline Distribution of Non-SFO-Regulated Structured Investment Products”. For Standardised Non-SFO-regulated Structured Deposit, Hong Kong banks should comply with the aforementioned HKMA’s circular, including the relevant requirements in respect of distribution of Standardised Non-SFO-regulated Structured Deposit, and other applicable regulatory requirements, including requirements applicable to investment products in this Circular; provision of Important Facts Statement for Currency-Linked Instruments and Interest Rate-Linked Instruments to retail customers; disclosing that the product is not protected by the Deposit Protection Scheme in Hong Kong. (Note: Footnote 8 of Annex 1 to this Circular regarding “deposits” correspondingly revised as: Refer to the definition of “deposits” in the Banking Ordinance (“BO”). For the purpose of this Circular, deposits are regarded as wealth management products.) Q15: Foreign currency deposits are included as eligible wealth management products under the Southbound Scheme. Can Hong Kong banks provide Southbound Scheme customers with any foreign currency deposits, including exotic currencies? A15: As an innovative measure in GBA, Cross-boundary WMC will be introduced in an incremental approach with proper risk controls, and ensuring proper protection for investors. Based on the above principle, Hong Kong banks shall not provide Southbound Scheme customers with exotic foreign currency deposits. It is

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recommended that at this stage, besides RMB and Hong Kong dollar, only major currencies, namely US dollar, Euro, UK Pound Sterling, Australian dollar, New Zealand dollar, Canadian dollar, Swiss Franc, Japanese Yen and Singapore dollar be offered. Q16: What should Hong Kong banks be aware of when selling investment products under the Southbound Scheme? A16: Hong Kong banks should comply with conduct related requirements (including the SFC Code of Conduct and SFC’s “Guidelines on Online Distribution and Advisory Platforms”) and relevant rules, and observe the following:
 Act with due skill, care and diligence when selecting investment products to be made available;  Provide customers with access to up-to-date product offering documents and information;  Provide customers with material relevant information as soon as reasonably practicable to enable customers to appraise the position of their investments;  When distributing bonds, observe the applicable restrictions (e.g. non-retail bonds are distributed relying on the exemptions for prospectus related provisions under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (if applicable); bonds listed under Chapter 37 of the Main Board Listing Rules are targeted at professional investors); and  Provide customers with the bank’s contact details for handling customer enquiries and complaints, and handle them in a timely and appropriate manner.

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Q17: What specific promotion and sale may Hong Kong banks carry out for the Southbound Scheme? A17: Regarding specific promotion and sale, Hong Kong banks:
may:
Promotion targeting at the Mainland public 1 not having opened a dedicated investment account and/or dedicated remittance account under the Southbound Scheme yet a. display and provide in Hong Kong (including the place of business or through appropriate ways such as through telephone, video conferences (if the Mainland investor requests the Mainland partner bank to assist in arranging a direct dialogue or conference with the Hong Kong bank, the Mainland partner bank can assist in arranging the relevant dialogue or conference), online channels (e.g. Internet platforms, mobile platforms, emails, instant messaging applications), media, etc.):
(i) general information about the Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, investor protection, etc.); (ii) factual representations of the Southbound Scheme services provided by the bank (including detailed arrangements for opening a dedicated investment account under the Southbound Scheme to conduct investment, categories of products and relevant services provided by the bank, contact details of the bank, and a representation on the cooperation between the Mainland partner bank and the Hong Kong bank made in accordance with Q3 of the FAQs); and (iii) broad description of the scope and categories of wealth management products under the Southbound Scheme, for example, the number of products (including the number of products under sub-categories, such as the number of funds by market or industry), nature, risks, features, fees and charges and range of return, etc. b. provide filtering function via electronic channels, e.g. on their websites, mobile platforms etc. to allow the Mainland public to

Includes non-Southbound Scheme customers of Hong Kong banks / Mainland partner banks.

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identify, in a self-directed manner, the eligible products provided by the Hong Kong bank under the Southbound Scheme;
c. upon request by an individual Mainland investor, provide factual
information on the services and individual products under the Southbound Scheme (including a list of wealth management products offered, offering documents / prospectuses of individual products, product key fact statements), and respond to enquiries on investment services provided by Hong Kong banks and individual products under the Southbound Scheme (e.g. explaining the features (such as underlying assets, past investment performance) and risks of individual products or certain product categories); d. provide information on macroeconomic conditions, market environment, industry segments, sectoral trends, or general financial information, or general information on the Cross￾boundary WMC, etc., and provide investor education (for example, educate investors how to interpret different types of product documents). Hong Kong banks may send staff to participate (and may participate jointly with staff of partner fund companies that have entered into distribution agreements with the Hong Kong banks) in briefings and seminars organised by their Mainland partner banks on the Mainland for the Mainland public, presenting the aforementioned information in paragraphs (a) and (d). However, Hong Kong banks (and staff of partner fund companies) which do not have qualification for securities investment consultancy business on the Mainland should not provide information 2 which involves investment analysis, forecast or advice on securities and their product values, market trends, etc. in briefings and seminars on the Mainland. e. disclose on public marketing materials that the Hong Kong bank offers gifts and/or promotional offers for Southbound investors opening dedicated investment accounts (nonetheless, investors need to approach the relevant bank to enquire about details of the gifts and/or promotional offers). Upon request by an individual investor, introduce the details of gifts and/or promotional offers for opening dedicated investment accounts;

2 For the avoidance of doubt, irrespective of whether the target audience is Mainland public or customers with a Southbound Scheme account, Hong Kong banks and their partner fund companies should comply with the requirements in paragraph (d) and relevant Mainland laws and regulations when sending staff to attend briefings and seminars on the Mainland.

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Distribution of products to customers with a Southbound Scheme account (including both dedicated investment account and dedicated remittance account) f. conduct transactions and relevant services with customers through appropriate channels in their place of business. In general, Mainland customers may, after the login process to the online platform or mobile platform of the Hong Kong banks, browse further product information under the Southbound Scheme and conduct transactions directly. When dealing with customers, Hong Kong banks should adequately disclose relevant key information, including product nature and risks. In addition, to assist customers to make investment decision, Hong Kong banks should assess customers’ risk profile 3 , and ensure the risk profiling result is valid when conducting transactions of investment products with the customers. Where there is a risk mismatch in such transaction (i.e. the risk rating of the product being higher than the customer’s risk profiling result), the Hong Kong bank should alert the customer, and seek confirmation from the customer as to whether to proceed with such transaction; g. upon an individual customer’s request, provide services and a list of wealth management products available under the Southbound Scheme and factual information on individual products, and respond to customer enquiries on the investment service and individual products provided by Hong Kong banks under the Southbound Scheme; h. upon an individual customer’s request and after considering the customer’s personal circumstances, introduce products which meet the risk appetite of the customer 4 ;
i. provide customers with research reports for reference, but the
content thereof should not involve any individual products. j. offer gifts (including gifts specific for Cross-boundary WMC

Please refer to Q2 and Q3 of the FAQs on Compliance with Suitability Obligations by Licensed or Registered Persons and paragraph 5.7 of Guidelines on Online Distribution and Advisory Platforms issued by the SFC. Hong Kong banks should comply with the requirements in paragraph 5.2 of the SFC Code of Conduct.

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services) to Southbound Scheme customers. Nonetheless, gifts should not be offered in promoting a specific investment product 5 . Hong Kong bank may also provide other promotional offers (including promotional offers specific for Cross-boundary WMC services), such as discounts / waivers / rebates for transaction / remittance fees, other fees or charges; more favourable exchange rates / deposit rates, etc.; Post-sale follow-up k. proactively contact the Mainland customers who have purchased wealth management products under the Southbound Scheme from the bank to provide updates on their investment portfolios. They may also provide information on macroeconomic conditions, etc.; and
l. refer to the requirements in paragraph (g) above in responding to
customer enquiries on individual products.
Arrangements when Southbound Scheme customers are present in Hong Kong m. for Southbound Scheme customers who are present in Hong Kong, Hong Kong banks should provide services to such investors in accordance with Hong Kong’s laws and regulatory requirements, as well as ensuring compliance with the requirements set out in this guidance, including but not limited to the requirements on quotas and scope of eligible wealth management products. Hong Kong banks may make solicitation or recommendation to Southbound Scheme customers present in Hong Kong, but should ensure compliance with suitability requirements and make sure that the solicitation or recommendation to such customer is reasonable in all the circumstances.

For Southbound Scheme, please also refer to paragraph 3.11 of the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission issued by the Securities and Futures Commission.

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General principle
Nevertheless, Hong Kong banks must be cautious that their information provided in paragraphs (a) to (g) are factual and fair representations and should not (i) involve solicitation or recommendation; (ii) constitute an offer to the Mainland public in relation to investment in individual products; or (iii) constitute active marketing of the Hong Kong bank’s Cross-boundary WMC services to the Mainland public. In addition, when Hong Kong banks send staff to participate in briefings and seminars organised by their Mainland partner banks on the Mainland for the Mainland public as mentioned in paragraph (d), the Hong Kong bank should not (i) promote Southbound Scheme services of the bank to the Mainland public; (ii) promote or carry on regulated activities, or involve individual wealth management products or circumstances of individual customers; or (iii) market the banking, deposit or wealth management services of the bank to the Mainland public (unless the required licenses / registrations for relevant banking service, deposit￾taking service or regulated activities have been obtained). may not:
a. proactively market the Hong Kong bank’s Southbound Scheme services to the Mainland public, or induce them to open an account under the Southbound Scheme (for example, on its social media, proactively provide a link to the application form to the Mainland public for the opening of a Southbound Scheme account) (unless the required licenses / registrations for the relevant activities have been obtained on the Mainland), or proactively provide the list of wealth management products or information about individual products under the Southbound Scheme; and b. indicate to the investor on the Mainland that Hong Kong banks will offer gifts and/or promotional offers if the Mainland investor open Southbound dedicated investment account, or offer gifts and/or promotional offers to induce the investor to open Cross￾boundary WMC account or purchase wealth management products.

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Q18: What specific promotion may Mainland partner banks carry out for the Southbound Scheme? A18: When carrying out the promotion activities, Mainland partner banks should comply with relevant guidelines and rules promulgated by Mainland regulatory authorities. In general, Mainland partner banks:
may:
a. display and provide on the Mainland, to the public (including non-Southbound Scheme customers):
(i) general information about Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, investor protection, etc.); and (ii) factual representations that the bank provides Southbound Scheme services (including the operational arrangements of remittance account opening under the Southbound Scheme; the contact details of the Mainland partner bank; and the cooperation between the Mainland partner bank and the Hong Kong bank (including the name and basic contact information (e.g. general enquiry or hotline number, branch address, website address, etc.) of the Hong Kong bank)). b. upon request by a Mainland investor who has opened a Southbound Scheme account, provide a list of eligible products under the Southbound Scheme;
c. organise briefings and seminars on the Mainland for the
Mainland public to introduce the content set out in paragraph (a), and information on macroeconomic conditions, market environment, industry segments, sectoral trends or general financial information, etc.; d. Mainland partner bank may disclose on public marketing materials that Mainland partner bank provides promotional offers for Mainland investors opening dedicated remittance account. Nonetheless, details of the promotional offers can only be provided upon request by the Mainland investor; and e. provide a hyperlink on its website or provide an address of the bank’s webpage (without a hyperlink) on other media for

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Mainland customers who have opened a dedicated investment account with the relevant Hong Kong bank to log into the Hong Kong bank’s website to obtain further information on individual products. The hyperlink should link directly to the public website of the Hong Kong bank. When Mainland customers click on the hyperlink provided by the Mainland partner bank, a clear message should be prompted to remind Mainland customers that they will be redirected to a website not being operated by the Mainland partner bank. Nevertheless, the Mainland partner bank must be cautious that the information provided on the Southbound Scheme services should be factual and fair representations and should not (i) involve solicitation or recommendation; (ii) constitute an offer to the Mainland public in relation to investment in individual products; or (iii) constitute active marketing of the Hong Kong bank’s Cross-boundary WMC services to the Mainland public. may not:
a. induce the Mainland public to open a dedicated investment account under the Southbound Scheme with a Hong Kong bank, or induce, through any media, the Mainland public to browse, via any hyperlinks or web addresses, the information of wealth management services and products provided by a Hong Kong bank; b. market or conduct the sale of wealth management products under the Southbound Scheme, or display or provide information of individual products not being authorized by the relevant Mainland authorities to the Mainland public; or
c. act as, or hold itself out as a representative or an agent of a Hong
Kong bank on the Mainland.
Q19: In what specific ways may Hong Kong banks disclose the scope, types and list of eligible products available under the Southbound Scheme? A19: (a) Hong Kong banks can provide filtering function via electronic channels, e.g. on their websites, mobile platforms, etc. to allow the Mainland public to identify, in a self-directed manner, the eligible products provided by the Hong Kong bank under the

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Southbound Scheme, or provide a hard copy or electronic leaflet of the product list upon an individual Mainland investor’s request. The basic principle is that Hong Kong banks and Mainland partner banks should not proactively display or proactively provide the list of eligible products under the Southbound Scheme to the Mainland public on their websites or by other means; (b) Hong Kong banks may, in Hong Kong, display and provide a general description of the number of available products, nature, features, risks, fees and charges and range of return, etc. of each type of eligible products under the Southbound Scheme to the public according to the Southbound Scheme services offered by Hong Kong banks. Take funds as an example. Hong Kong banks may disclose:
(i) the number of eligible funds under the Southbound Scheme offered by Hong Kong banks; (ii) a breakdown by the types of eligible funds under the Southbound Scheme offered by Hong Kong banks and the related number of funds under each sub-type (such as the types of underlying investments (equity funds (e.g. the type of equity markets), bond funds (e.g. the investment grading of the underlying bonds), mixed funds), geographical locations of the underlying investments, risk rating as assigned by the banks concerned); (iii) general risks associated with the funds; (iv) range of fees and charges of the funds; and (v) statistics related to the rate of return of the funds (such as historic average rate of return and median rate of return of the funds). Information concerning individual products should follow the requirements set out in paragraph (a). Q20: How do Southbound Scheme customers terminate their dedicated remittance account and dedicated investment account under the Southbound Scheme? A20: If a Southbound Scheme customer indicates to the Hong Kong bank his/her intention to terminate his/her dedicated investment account, the Southbound Scheme customer should redeem the wealth management product(s) and remit all funds in the dedicated

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investment account back to the dedicated remittance account. The Hong Kong bank should ensure that no wealth management product(s) or funds remain in the dedicated investment account of such customer, and should notify its Mainland partner bank after the successful termination of the customer’s dedicated investment account, then dismiss the pairing relationship between the dedicated remittance account and the dedicated investment account. If a Southbound Scheme customer indicates to the Mainland partner bank his/her intention to terminate his/her dedicated remittance account or cancel the designation of the account maintained with the Mainland partner bank as the dedicated remittance account, the Mainland partner bank should ascertain with its partnering Hong Kong bank that no wealth management product(s) or funds under the Southbound Scheme remain in the dedicated investment account of such customer, and should confirm that no funds remain in his/her dedicated remittance account before terminating the dedicated remittance account for such customer or cancelling the designation of the account maintained with the Mainland partner bank as the dedicated remittance account. The Mainland partner bank should also notify its partnering Hong Kong bank, then dismiss the pairing relationship between the dedicated remittance and the dedicated investment account. Q21: Can Southbound Scheme customers open a dedicated investment account with another Hong Kong bank? A21: Each eligible investor under the Southbound Scheme should, at all times, open only one dedicated investment account in a Hong Kong bank. If investors wish to open a dedicated investment account with another Hong Kong bank, they should first terminate the dedicated investment account maintained with the other Hong Kong bank. Northbound Scheme Q22: Hong Kong banks may assist Northbound Scheme investors to open dedicated investment accounts with Mainland partner banks. In connection, what account opening tasks can Hong Kong banks perform? A22: Hong Kong banks may, according to customers’ instructions and acting on customers’ behalf, assist customers to fill in and pass the

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requisite account opening documents to their Mainland partner banks. Such account opening documents of a Mainland partner bank should include a prominent warning, indicating that the Mainland partner bank is not an AI as defined in the BO, and that deposits maintained with the Mainland partner bank are not protected by the Deposit Protection Scheme in Hong Kong. An example of such warning can be “[Name of the Mainland partner bank] is incorporated in [name of jurisdiction where it is incorporated] and is not an authorized institution in Hong Kong as defined in the Banking Ordinance and is not subject to the supervision of the Monetary Authority. [Name of the Mainland partner bank] cannot carry on any banking business or business of taking deposits in Hong Kong. Any deposits maintained with [Name of the Mainland partner bank] are not protected under the Deposit Protection Scheme in Hong Kong.”. Q23: Can Hong Kong residents open a dedicated investment account with Mainland banks before opening a dedicated remittance account with Hong Kong banks? A23: Hong Kong banks and Mainland partner banks can handle this with flexibility, for example, to complete account opening formalities for the dedicated investment account first, then enable the dedicated investment account only after the opening of and pairing with the dedicated remittance account, and the establishment of closed-loop funds management between the accounts. Q24: What measures can be taken by Hong Kong banks to ascertain that investors have not conducted Northbound Scheme activities with other banks? A24: Applicable measures include requesting investors to declare that they do not hold and designate any dedicated remittance account with other banks under the Northbound Scheme to pair with a dedicated investment account of a Mainland partner bank. Mainland regulatory authorities will also conduct screening afterwards. In the event that repeated account opening is identified, Hong Kong banks should follow up accordingly upon receipt of relevant notice.

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Q25: What should Mainland partner banks be aware of when accepting deposits from Hong Kong investors? A25: Unless authorized under the BO, Mainland partner banks are prohibited from carrying on banking business or business of taking deposits in Hong Kong. Where a Mainland partner bank does not carry on banking business or business of taking deposits in Hong Kong, in taking deposits from Hong Kong investors under the Northbound Scheme, the Mainland partner bank should ensure that the deposits are taken and maintained outside of Hong Kong. Where Mainland partner banks issue advertisements, invitations or documents inviting the Hong Kong public to make any deposits on the Mainland, they should ensure that such advertisements, invitations or documents comply with the Fifth Schedule of the BO on the “Requirements Applicable to Prescribed Advertisements”. Mainland partner banks should not represent themselves to be a bank or an AI in Hong Kong, or to be carrying on banking business or the business of taking deposits in Hong Kong, and there should be no indication of Hong Kong banks being the representatives or agents of Mainland partner banks in Hong Kong, in order to prevent breaches of relevant provisions under BO by Hong Kong banks or Mainland partner banks, such as Section 46 regarding regulations on Hong Kong representative offices. Q26: What specific promotion may Hong Kong banks carry out for the Northbound Scheme? A26: Regarding specific promotion, Hong Kong banks:
may:
a. in Hong Kong, to the public (including non-Northbound Scheme customers), through the following approaches:
 on various media in Hong Kong (including newspapers, magazines, television and radio, etc.);  in its place of business;  on its website and social media accounts; and  through various communication channels (including issuing mass emails or messages and making phone calls) to bank

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customers (including non-Northbound Scheme customers), display and provide:
(i) general information about the Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, investor protection, etc.); and (ii)factual representations of the Northbound Scheme services provided by the bank (including detailed arrangements for opening a dedicated remittance account under the Northbound Scheme, relevant services provided by the bank, contact details of the bank, and a representation on the cooperation between the Mainland partner bank and the Hong Kong bank made in accordance with Q3 of the FAQs); b. upon request by a Hong Kong investor who has opened a Northbound Scheme account (and maintain a non-Cross￾boundary WMC investment account with the Hong Kong bank at the same time), provide a list of eligible products under the Northbound Scheme;
c. organise briefings and seminars in Hong Kong for the Hong Kong
public to introduce the content set out in paragraph (a), and information on macroeconomic conditions, market environment, industry segments, sectoral trends or general financial information, etc.; d. provide a hyperlink on its website or provide an address of the bank’s webpage (without a hyperlink) on other media for Hong Kong customers who have opened a dedicated investment account with the relevant Mainland partner bank to log into the Mainland bank’s website to obtain further information on individual products. The hyperlink should link directly to the public website of the Mainland partner bank. The Hong Kong bank should provide a clear message on its website to remind Hong Kong customers that investment products offered by the Mainland partner bank have not been authorized by the SFC and the relevant offering documents have not been examined by the SFC, and that investors should exercise caution in relation to such offer. When Hong Kong customers click on the hyperlink provided by the Hong Kong bank, a clear message should be prompted to remind Hong Kong customers that they will be redirected to a website not being operated by the Hong Kong

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bank; and e. offer gifts (including gifts specific for Cross-boundary WMC services) to Northbound Scheme customers. Hong Kong banks may also provide other promotional offers (including promotional offers specific for Cross-boundary WMC services), such as discounts / waivers / rebates for transaction / remittance fees, other fees or charges; more favourable exchange rates / deposit rates, etc. Hong Kong banks may disclose on public marketing materials that the Hong Kong bank offers gifts and/or promotional offers for Northbound investors opening remittance accounts (nonetheless, investors need to approach the relevant bank to enquire about details of the gifts and/or promotional offers). Upon request by an individual investor, introduce the details of gifts and/or promotional offers for opening remittance accounts. Nevertheless, Hong Kong banks must be cautious that the information provided on the Northbound Scheme service should be factual and fair representations, and should not (i) involve solicitation or recommendation; (ii) constitute an offer to the Hong Kong public in relation to investment in individual products; or (iii) constitute active marketing of the Mainland partner bank’s Cross￾boundary WMC services to the Hong Kong public. may not:
a. induce the Hong Kong public to open a dedicated investment account under the Northbound Scheme with a Mainland partner bank, or induce, through any media, the Hong Kong public to browse, via any hyperlinks or web addresses, the information of wealth management services and products provided by Mainland partner banks; b. market or conduct the sale of wealth management products under the Northbound Scheme, or display/provide information about individual products not being authorized by the SFC to the Hong Kong public;
c. act as, or hold itself out as a representative or an agent of a
Mainland partner bank in Hong Kong; or

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d. offer gifts and/or promotional offers on the Mainland to induce investors to open a Cross-boundary WMC account. Q27: What specific promotion and sale may Mainland partner banks carry out for the Northbound Scheme? A27: (1) When carrying out the following promotion and sale activities, Mainland partner banks should also comply with relevant guidelines and rules promulgated by Mainland regulatory authorities. Promotion targeting at the Hong Kong public without a dedicated investment account and/or dedicated remittance account under the Northbound Scheme 6 (2) Mainland partner banks may display and provide, on the Mainland (including the place of business or through appropriate ways such as through telephone, video conferences, online channels and media etc.):
(i) general information about the Cross-boundary WMC (including the scope and categories of eligible products, quota, funds remittance and transfer arrangements, and investor protection, etc.); (ii) factual representations that the bank provides Northbound Scheme services (including the detailed arrangements for opening a dedicated investment account under the Northbound Scheme to conduct investment, categories of products and relevant services provided by the bank, contact details of the bank, and the cooperation between the Hong Kong bank and the Mainland partner bank); and (iii) broad description of the scope and categories of wealth management products under the Northbound Scheme, for example, number of products (including number of products under sub-categories, such as number of funds by market or industry), nature, risks, features, fees and charges and range of return, etc. (3) Provide filtering function 7 via electronic channels, e.g. on their websites and mobile platforms, etc. to allow the Hong Kong public to identify, in a self-directed manner, the eligible products

Includes non-Northbound Scheme customers of the Hong Kong banks / Mainland partner banks. 7 The filtering results should only display the name of the products, but not accompanied with the hyperlink of the relevant information.

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provided by the Mainland partner bank under the Northbound Scheme. (4) Upon request by an individual Hong Kong investor, Mainland partner banks may provide factual information on the services and individual products under the Northbound Scheme (including a list of wealth management products offered, offering documents / prospectuses of individual products, product key fact statements), and respond to enquiries on investment services provided by Mainland partner banks and individual products under the Northbound Scheme (e.g. explaining the features (such as underlying assets, past investment performance) and risks of individual products or certain product categories). (5) Mainland partner banks may provide information on macroeconomic conditions, market environment, industry segments, general financial information, or general information on Cross-boundary WMC, etc., and send staff to participate (and may participate jointly with staff of the bank’s partner institutions (including wealth management subsidiary companies and fund companies)) in briefings and seminars organised by the Hong Kong banks in Hong Kong, presenting the aforementioned information in paragraphs (2) and (5). (6) Mainland partner bank may disclose on public marketing materials that Mainland partner bank provides promotional offers for Hong Kong investors opening dedicated investment account. Nonetheless, details of the promotional offers can only be provided upon request by the Hong Kong investor. (7) Mainland partner banks should not proactively market the bank’s Northbound Scheme services to the Hong Kong public or induce them to open an account under the Northbound Scheme (for example, on its social media, proactively provide a link to the application form to Hong Kong public for the opening of a Northbound Scheme account); or provide a list of wealth management products under the Northbound Scheme or information about individual wealth management product under the Northbound Scheme.

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Distribution of products to customers with a Northbound Scheme account (including both dedicated investment account and dedicated remittance account) (8) In general, Hong Kong customers may, after the login process to the online platform or mobile platform of the Mainland partner banks, browse further product information under the Northbound Scheme and place instructions for the sale and purchase of eligible wealth management products, remittance or currency exchange, etc. Mainland partner banks should comply with guidelines of the relevant Mainland authorities when conducting transactions for customers, including conducting sales management. (9) Mainland partner banks may, upon an individual customer’s request, provide services and a list of wealth management products offered under the Northbound Scheme and factual information on individual products, and respond to customer enquiries on the investment services and individual products provided by Mainland partner banks under the Northbound Scheme. (10) Mainland partner banks may, upon an individual customer’s request and after considering the customer’s personal circumstances, introduce products which meet the risk appetite of the customer. (11) Mainland partner banks may provide customers with research reports for reference, but the content thereof should not involve any individual products. Post-sale follow up (12) Mainland partner banks may proactively contact customers to provide updates on their investment portfolios. They may also provide information on macroeconomic, market and industry conditions, etc., or general financial and investment information and concepts. Mainland partner banks should establish a mechanism to ensure that the process of their interaction with customers does not involve solicitation or recommendation; does not constitute an offer to the Hong Kong public in relation to investment in individual products; and does not constitute active

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marketing Mainland partner bank’s Cross-boundary WMC services to the Hong Kong public. (13) Mainland partner banks may refer to the requirements in paragraph (9) above in responding to customer enquiries on individual products. Arrangements when Northbound Scheme customers are present on the Mainland (14) For Northbound Scheme customers who are present on the Mainland, Mainland partner banks should provide services in accordance with the Mainland’s laws and regulatory requirements, as well as ensuring compliance with the requirements set out in this guidance, including but not limited to the requirements on quotas and scope of eligible wealth management products. General principle (15) The information provided by Mainland partner banks in paragraphs (2) to (9) should be factual and fair representations, should not (i) involve solicitation or recommendation; (ii) constitute an offer to the Hong Kong public in relation to investment in individual products; or (iii) constitute active marketing of the Mainland partner bank’s Cross-boundary WMC services to the Hong Kong public. In addition, when Mainland partner banks send staff to participate in briefings and seminars organised by Hong Kong banks in Hong Kong for the Hong Kong public as mentioned in paragraph (5), the Mainland partner bank should not (i) promote Northbound Scheme services of the bank to the Hong Kong public; (ii) promote or carry on regulated activities under the SFO, or involve individual wealth management products or circumstances of individual customers; or (iii) market the banking, deposit or wealth management services of the bank to the Hong Kong public.

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Q28: In what specific ways may Hong Kong banks and Mainland partner banks disclose the scope, types and list of eligible products available under their Northbound Scheme? A28: (a) Mainland partner banks can provide filtering function 8 via electronic channels, e.g. on their websites and mobile platforms, etc. to allow the Hong Kong public to identify, in a self-directed manner, the eligible products provided by the Mainland partner bank under the Northbound Scheme, or provide a hard copy or electronic leaflet of the product list upon an individual Hong Kong investor’s request. The basic principle is that Hong Kong banks and Mainland partner banks should not proactively display or proactively provide the list of eligible products under the Northbound Scheme to the Hong Kong public on their websites or by other means. Hong Kong banks and Mainland partner banks should also ensure that Hong Kong investors cannot purchase directly, through online platform of the Mainland partner bank, products under the Northbound Scheme, unless such Hong Kong investor takes multiple steps proactively, including conducting the requisite account opening procedures and becoming a customer of the Mainland partner bank; (b) Hong Kong banks and Mainland partner banks may, in Hong Kong and on the Mainland respectively, proactively display and provide a general description of the number of available products, nature, features, risks, fees and charges and range of return, etc. of each category of eligible products under the Northbound Scheme to the public according to the Northbound Scheme services offered by Mainland partner banks. Taking funds as an example. Hong Kong banks and Mainland partner banks may disclose:
(i) the number of eligible funds under the Northbound Scheme offered by Mainland partner banks; (ii) a breakdown by the types of eligible funds under the Northbound Scheme offered by Mainland partner banks and the related number of funds under each sub-type (such as the types of underlying investments (equity funds (e.g. the type of equity markets), bond funds (e.g. the investment grading of the underlying bonds), mixed funds),

8 The filtering results should only display the name of the products, but not accompanied with the hyperlink of the relevant product information.

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geographical locations of the underlying investments, risk rating as assigned by the banks concerned); (iii) general risks associated with the funds; (iv) range of fees and charges of the funds; and (v) statistics related to the rate of return of the funds (such as historic average rate of return and median rate of return of the funds). Information concerning individual products should follow the requirements set out in paragraph (a). In general, as individual products are not authorized under the SFO, Hong Kong banks and Mainland partner banks should not proactively disclose the names and information about individual products to the Hong Kong public. If Hong Kong public make an enquiry with Hong Kong banks on an individual product, Hong Kong banks should refer such enquiry to Mainland partner banks for handling (please refer to Q26 and 27 of FAQs for details). (c) As for providing information on deposits to be taken by Mainland partner banks under the Northbound Scheme, please refer to Q25 of the FAQs. Q29: Can Hong Kong banks arrange for direct dialogue or video conference between Hong Kong investors and Mainland partner banks on Northbound Scheme services, and participate in the three-party dialogue or video conference? A29: If a Hong Kong investor requests a Hong Kong bank to assist in arranging a direct dialogue or video conference with the Mainland partner bank on the Northbound Scheme service, in respect of the first request, the Hong Kong bank may provide the contact information of the Mainland partner bank (such as telephone number) to allow the Hong Kong investor to initiate the relevant dialogue or conference (Hong Kong bank representatives can participate in such dialogue or video-conference). If the Hong Kong investor and the Mainland partner bank agree that the Hong Kong bank can assist the Hong Kong investor in arranging a direct dialogue or conference with the Mainland partner bank in the future, the Hong Kong bank can arrange the relevant dialogue or conference in the future upon the investor’s request.

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There should not be any indication which suggests that the Hong Kong bank is the representative or agent of the Mainland partner bank in Hong Kong. Q30: How do Northbound Scheme customers terminate their dedicated remittance account and dedicated investment account under the Northbound Scheme? A30: If a Northbound Scheme customer indicates to the Mainland partner bank his/her intention to terminate his/her dedicated investment account, the Northbound Scheme customer should redeem the wealth management product(s) and remit all funds in the dedicated investment account back to the dedicated remittance account. The Mainland partner bank should ensure that no wealth management product(s) or funds remain in the dedicated investment account of such customer, and should notify its partnering Hong Kong bank after the successful termination of the customer’s dedicated investment account, then dismiss the pairing relationship between the dedicated remittance account and the dedicated investment account. If a Northbound Scheme customer indicates to the Hong Kong bank his/her intention to terminate his/her dedicated remittance account or cancel the designation of the account maintained with the Hong Kong bank as the dedicated remittance account, the Hong Kong bank should ascertain with its partnering Mainland partner bank that no wealth management product(s) or funds remain in the dedicated investment account of such customer, and should confirm that no funds under the Northbound Scheme remain in his/her dedicated remittance account before terminating the dedicated remittance account for such customer or cancelling the designation of the account maintained with the Hong Kong bank as the dedicated remittance account. The Hong Kong bank should also notify its partnering Mainland partner bank, then dismiss the pairing relationship between the dedicated remittance and the dedicated investment account. Q31: Can Northbound Scheme customers open a dedicated remittance account with another Hong Kong bank? A31: Each eligible investor under the Northbound Scheme should, at all times, open or designate only one dedicated remittance account and

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one dedicated investment account. If investors wish to open or designate a dedicated remittance account with another Hong Kong bank, they should first terminate or cancel the designation of the dedicated remittance account maintained with the other Hong Kong bank.