Hong Kong’s banking regulator has issued a circular to provide assurances about opening accounts for mainland clients following reports of a cross-border crackdown by Chinese authorities.
The Hong Kong Monetary Authority (HKMA) said that account opening for mainland clients in the city is still running smoothly “in general” under tightened rules, amid concerns about a crackdown by Chinese authorities.
“The banking industry has implemented the new regulatory requirements set out in the HKMA circular to ensure the account opening process is compliant and orderly,” according to circular by Hong Kong’s banking regulator. “Chinese mainland customers continue to apply for opening accounts, and in general, the account opening process has been operating smoothly.”
The statement follows media reports that some account opening applications by mainland residents were rejected as Chinese regulators tightened scrutiny on illicit cross-border investments. The China Securities Regulatory Commission (CSRC) has already slapped a fine of more than USD330 million last month on three brokerage firms – Tiger Brokers, Futu Securities International and Longbridge Securities – for offering mainland Chinese investors access to overseas stocks without a licence.
In a separate statement, the CSRC said that its ongoing efforts against “illegal” cross-border investments won’t lead to the offshore accounts of mainland Chinese being closed nor will assets be forcibly liquidated.
