Hong Kong Mainland Client Checks Tighten at Banks

Hong Kong banks are tightening scrutiny of mainland Chinese clients opening savings and investment accounts as Beijing intensifies efforts to curb illegal cross-border trading and capital outflows.

The Hong Kong mainland client checks have expanded across several major lenders in the city, according to people familiar with the matter.

Some large Chinese banks in Hong Kong have reportedly suspended the opening of investment and wealth-management accounts for mainland residents, while others have raised documentation requirements for savings accounts and enhanced due-diligence procedures.

Hong Kong regulators have also instructed banks to require prospective investment-account clients to declare that their funds originate outside mainland China.

The tighter Hong Kong mainland client checks follow more than USD330m in fines imposed by Chinese authorities on three online brokers accused of operating on the mainland without licences.

The measures highlight growing regulatory sensitivity surrounding cross-border capital flows and offshore wealth activity involving mainland Chinese investors.