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Enoch Yiu

Beijing will allow Hong Kong and Macau-domiciled banks to launch a range of services on the mainland including credit cards next month, the latest in a series of steps to integrate the financial sectors of China and its two special administrative regions.
The National Financial Regulatory Administration (NFRA), an agency under the State Council that oversees the financial sector, said on Thursday that it would lift restrictions that currently prohibit Hong Kong and Macau banks from offering any type of bank card services to their customers on the mainland.
The new rules introduced under the Closer Economic Partnership Arrangement between the mainland and Hong Kong would allow mainland units of Hong Kong commercial banks to issue debit cards and credit cards to customers from March 1, according to a statement posted on the NFRA’s website.
Hong Kong’s major lenders such as HSBC Holdings, Standard Chartered Bank, Bank of East Asia, Hang Seng Bank and others would benefit from the move, according to Kenny Ng Lai-yin, a strategist at Everbright Securities International.

“Big international players such as HSBC and Standard Chartered are eyeing further expansion in Asia, particularly mainland China,” Ng said. “The easing of the restrictions will allow Hong Kong lenders’ mainland branches to provide more services to customers, enhancing their competitiveness against domestic mainland Chinese banks.”
Hong Kong lenders will be allowed to offer both foreign currency bank cards and yuan bank cards for non-mainland-Chinese individual customers, government departments, and corporate clients.
However, the NFRA said Hong Kong banks could only offer foreign currency bank cards to mainland Chinese residents.
The banking services will include issuing debit cards and credit cards, withdrawals and fund transfers.
The purpose of easing the rules was to further open up the mainland’s banking and finance sector, an NFRA spokesman said.
This would complement efforts to promote the integration of the Greater Bay Area, along with closer cooperation between the financial sectors of mainland China, and Hong Kong and Macau, he added.
Greater Bay Area is Beijing’s plan, which was rolled out in 2019, to integrate Hong Kong, Macau and nine mainland cities into an economic powerhouse by promoting more talent and trade flows between them.
The move was also intended to upgrade the overall quality of financial services offered by the mainland branches of Hong Kong and Macau lenders, the spokesman said.
All banks are required to implement measures to protect customers from online risks, guard personal privacy and other consumer rights.
“The new move is definitely positive for Hong Kong banks,” said Wilson Chan Fung-cheung, associate director of the MBA programme at City University of Hong Kong.
“Bank cards are a vital service to attract new customers. Hong Kong banks can also work with mainland merchants and restaurants to offer incentives to credit card customers. This will allow Hong Kong banks to compete with mainland banks in the future.”
The announcement was the latest move by Beijing to open up its banking sector.
On January 20, HSBC, Standard Chartered and Bank of Communications were added to the list of banks that allowed Hongkongers to open mainland accounts remotely.
Bank of China (Hong Kong) was the first to offer remote account-opening services in 2019. ICBC (Asia), China Construction Bank, China Merchants Bank and Bank of East Asia followed in September 2022.
After opening a so-called type two 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 the mainland account with the same bank. Opening the account is free, and there is no minimum balance requirement.
Customers can then transfer money to payment apps such as Alipay or WeChat Pay so they can shop and dine on the mainland.


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The new rules will benefit lenders such as HSBC, Standard Chartered, Bank of East Asia and Hang Seng Bank, analysts say


The new rules will benefit lenders such as HSBC, Standard Chartered, Bank of East Asia and Hang Seng Bank, analysts say.


Beijing allows Hong Kong banks to issue credit cards on mainland from March 1

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The new rules will benefit lenders such as HSBC, Standard Chartered, Bank of East Asia and Hang Seng Bank, analysts say

The new rules will benefit lenders such as HSBC, Standard Chartered, Bank of East Asia and Hang Seng Bank, analysts say