Paul Chan: Hong Kong Studying Lowering Cross-Border Wealth Connect Threshold, Exploring Opening Mainland Retail Access to HK IPOs
N.R. Finch
Hong Kong Financial Secretary Paul Chan revealed the government is negotiating with mainland regulators to lower Wealth Connect entry thresholds, raise quotas, and broaden eligible products — while exploring a path for mainland retail investors to subscribe to Hong Kong IPOs, a meaningful widening of cross-border allocation channels.
What changes are on the table for Wealth Connect?
Three tracks are moving in parallel: lower the entry threshold, raise the cross-border investment quota ceiling, and expand the eligible product range.
Chan noted the scheme initially offered only low-risk fixed-income products to control risk; he now sees the time as right to add medium-risk, higher-return innovative products.
This means → Wealth Connect is shifting from a "pilot phase" to an "expansion phase," with the product shelf moving from conservative to diversified.
Mainland retail investors buying HK IPOs — how far along is it?
Chan confirmed that opening legal access for mainland retail investors to subscribe to HK IPOs and widening cross-border channels into Shanghai's STAR Market are both active discussion priorities.
He stressed that mainland capital-market opening follows a step-by-step principle; plans will roll out in phases, with no specific timeline disclosed yet.
In plain terms = the direction is set, but the pace depends on when both regulators jointly give the green light.
The CSRC crackdown on illegal cross-border trading — what does it mean?
On May 22 the China Securities Regulatory Commission launched an enforcement campaign against illegal cross-border securities, futures, and fund operations, targeting anti-money-laundering and unauthorized forex outflows.
Post-crackdown, southbound Connect trading stayed active: average daily turnover since late May reached HK$121 billion, up roughly 14% year-on-year. Northbound Connect was even stronger — average daily turnover rose from about RMB 212 billion last year to near RMB 380 billion this year, with some sessions approaching RMB 400 billion.
Chan's read: short-term sentiment may take a hit, but over time, bringing cross-border investment into a compliant framework actually clears the path for further liberalization. This reflects a regulatory logic of "regulate first, then open wider."
What else is Hong Kong doing to boost its market?
Chan said the core strategy is attracting quality companies to list in Hong Kong, with capital sourced not just from the mainland but also from Southeast Asia, the Middle East, and Central Asia.
On listing rules, the dual-class share structure will be further refined and the settlement cycle is under study to shorten from T+2 to T+1, with potential for further acceleration.
In plain terms = the Hong Kong exchange is pushing on both ends — pulling good companies in on one side, and bringing trading efficiency up to global standards on the other.
Content is for reference only, not financial advice.