Promotion and Sale Arrangements under the Southbound Scheme of the Cross-boundary Wealth Management Connect Pilot Scheme

55th Floor, Two International Finance Centre, 香 港 中 環 金 融 街 8 號 國 際 金 融 中 心 2 期 55 樓 8 Finance Street, Central, Hong Kong 網 址：www.hkma.gov.hk Website: www.hkma.gov.hk Our Ref: B1/15C B9/206C G16/1C 12 June 2025 The Chief Executive All Registered Institutions Dear Sir / Madam, Promotion and Sale Arrangements under the Southbound Scheme of the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area Further to the “Amendments to Implementation Arrangements for the Cross￾boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area” (“Implementation Arrangements”) issued by the Hong Kong Monetary Authority on 24 January 2024 and the subsequent guidance, after communicating and following up with relevant regulatory authorities, we are writing to clarify the promotion and sale arrangements under the Southbound Scheme as below. Under the Southbound Scheme, upon request of a Southbound Scheme customer, a Mainland partner bank can assist the Southbound Scheme customer in setting up a three-party dialogue (online, teleconference or video conference) with the Hong Kong bank in the place of business of the Mainland partner bank on the Mainland in relation to the Southbound Scheme services, provided that the Mainland partner bank has complied with relevant regulatory requirements on the Mainland 1 , whereas the Hong Kong bank representatives can, in such three-party dialogue, introduce eligible wealth management products under the Southbound Scheme to the Southbound Scheme customer2 . The transactions carried out by Southbound Scheme investors via their dedicated investment accounts are subject to the 1 Including the requirements in relation to audio and video recording. For details, please refer to the guidance issued by Mainland regulatory authority. 2 Should comply with paragraph 9.4(b) of Annex 1 to the Implementation Arrangements and related guidance.

2 protection of the laws and regulations and regulatory regime in Hong Kong3 . If Hong Kong banks make solicitation or recommendation, they should comply with the suitability obligations where applicable. Hong Kong banks should also comply with other relevant regulatory requirements. Hong Kong banks should set out clearly each party’s responsibilities and obligations in the cooperation agreement4 with the Mainland partner bank regarding relevant cooperation. There should not be any indication which suggests that the Mainland partner bank is the agent or representative of the Hong Kong bank on the Mainland. In respect of the arrangements of three-party dialogue under the Northbound Scheme, please refer to Q29 of the Appendix (Frequently Asked Questions) to the Implementation Arrangements. If you have any questions on this circular, please contact Ms Anita Chan on 2878- 1538 or Ms Mabel Chan on 2878-1391. Yours faithfully, Alan Au Executive Director (Banking Conduct) c.c. Securities and Futures Commission (Attn: Dr Eric Yip, Executive Director (Intermediaries) Ms Christina Choi, Executive Director (Investment Products)) 3 Paragraph 12.1 of Annex 1 to the Implementation Arrangements. 4 Paragraph 1.2 of Annex 1 to the Implementation Arrangements.