Easier Cross-Border Banking for Hongkongers
Hong Kong residents can now open mainland bank accounts remotely, thanks to a new initiative by HSBC, Standard Chartered Bank, and Bank of Communications (Bocom). This move is part of a broader effort to facilitate travel, living, working, and retirement across the border.
Convenient Banking Solutions
After opening a Type II account at a designated branch in Hong Kong, customers can transfer up to 10,000 yuan (US$1,367) per day or 200,000 yuan per year to their mainland account with the same bank. The account opening process is free, with no minimum balance requirement. Customers can then transfer money to popular payment apps like Alipay or WeChat Pay, enabling them to shop and dine in mainland China with ease.
Understanding China’s Banking System
China has three types of bank accounts: Type I, II, and III. While Type I accounts require in-person opening on the mainland, Beijing has allowed certain local banks to offer remote account openings for Type II and III accounts since 2019. These accounts offer varying levels of banking services.
Streamlined Attestation Services
The announcement by the three Hong Kong banks comes on the heels of Beijing’s decision to add them to the list of lenders cleared to offer attestation services. This means the bank verifies the identity of the person opening the mainland account. A total of eight lenders now offer such services.
Meeting Growing Demand
According to an HSBC survey, about two-thirds of Hongkongers believe having a mainland bank account would be convenient when traveling in China. However, almost 70% were unwilling to travel across the border to open an account. The new service addresses this demand, providing a reliable and convenient way for customers to manage their everyday finances.
Industry Insights
“The trend to travel to mainland Greater Bay Area cities is on the rise, and customers’ preference for payment options is shifting to mobile,” said Maggie Ng, head of wealth and personal banking in Hong Kong at HSBC. Mary Huen Wai-yi, CEO of Standard Chartered Hong Kong, Greater China and North Asia, added that the new service will make everyday spending in mainland China more convenient for customers.
Growing Popularity
Bank of China (Hong Kong) was the first to offer remote account-opening services in 2019. Since then, other banks have followed suit, with over 410,000 such accounts opened to date, according to the Hong Kong Monetary Authority.
Boosting Financial Cooperation
The governor of the People’s Bank of China, Pan Gongsheng, recently announced the expansion of attestation services, among other measures, during the Asian Financial Forum in Hong Kong. This move is expected to enhance the attractiveness and liquidity of Hong Kong’s capital market.
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