BEIJING, July 14 (Xinhua) -- Wealth Management Connect will help promote investment diversification and facilitate the flow of capital in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), a KPMG report said.

It will also promote RMB internationalization and strengthen Hong Kong's status as an international financial center and offshore RMB hub, it said.

On June 29, the People's Bank of China, the Hong Kong Monetary Authority and the Monetary Authority of Macao jointly announced the decision to implement Wealth Management Connect, or the cross-boundary wealth management connect pilot scheme in the GBA, which will allow residents in the GBA to invest in wealth management products distributed by banks in the region.

The move is a welcome development and confirmation of policymakers' intent to launch a scheme that will boost interconnectivity, facilitate the seamless flow of capital and broaden cross-boundary investment channels in the GBA, the report said.

The growing demand for wealth management in the GBA will continue to present significant opportunities for financial institutions, it said.

Wealth Management Connect is expected to drive greater product innovation and may attract more international financial institutions to set up or expand their presence in the GBA to capitalize on these opportunities and tap into a large investor base, it said.