Now sceptics, including some of the bank's fiercest rivals, have brushed off the offering, claiming that it is nothing more than a marketing trick that has become a regular Wing Hang feature. They reckon there are probably many hidden conditions in the applications that will preclude the majority of applicants from qualifying.

But in response, Wing Hang Credit director and general manager Checkley Sin Kwok-lam has brushed aside the bank's critics, telling us this week that out of more than 2,000 applicants so far, more than 30 per cent had been approved and only a 'few per cent' rejected, which is a testament to the plan's genuineness. Decisions on the rest of the applications are pending.

Mr Sin attributes the low rejection rate to the ability of bank staff to filter out those who do not meet basic requirements.

He adds the bank is confident of meeting its target of approving between $200 million and $300 million in loans by the end of the month-long promotion in the middle of next month.

no virgin market rush

In the world of retail banking, where product differentiation is getting bleaker, one of the key doctrines industry players hold dearly is to get ahead of competitors while pushing out a new product.

This is especially true when it comes to trail-blazing the untapped mainland market.

Last week, Hang Seng Bank became Hong Kong's first retail bank to make use of the Qualified Foreign Institutional Investor licence, awarded by the China Securities Regulatory Commission to give foreign investors the chance to participate in economic growth by buying directly into mainland-listed companies.

The bank's new 'A-share Investment Services' allow investors to trade A shares and convertible bonds listed on the stock markets in Shenzhen and Shanghai, in addition to the launch of its two A-share based capital guaranteed funds.

Other banks say they are in no rush to launch the service, predicting that investing in Hong Kong-listed shares of mainland companies will remain investors' preferred route in the near future.

taxing deal for heirs

Last week, the South China Morning Post reported Bank of East Asia chairman David Li Kwok-po's warning about Hong Kong's rich moving their wealth overseas to evade estate duties.

His warning came, coincidently, just days before the government launched its public consultation on 'death taxes' on Monday.

Some thought Mr Li's candour was a free advertisement for his family business as he predictably urged the wealthy to put their money with BEA.

Indeed, the financial services industry has long been contemplating new strategies to take advantage of Hong Kong's estate duties.

While many private banks already provide services to help clients set up offshore accounts, some insurance companies are trying to take a slice of the pie by asking the rich to buy life policies to help their children cover their own estate duty.

Take the sample cited by US financial services giant Mass Mutual, which says a 55-year-old non-smoking male with HK$16 million in net assets would incur an estate duty of $2.4 million.

Since Hong Kong law requires estate duties to be paid in full before the deceased's wealth is unfrozen, Mass Mutual reckons that as not all the heirs of the rich are wealthy themselves, they will likely need help raising the cash. So, for a mere $16,617 a month, the company will pay the beneficiary a total of $2.4 million.

While there are no statistics on how popular these policies are, it can be safely assumed that death tax advocates in the government will be glad to see more of them - making it a win-win situation.

for firms' health's sake

It seems Hong Kong is still living under the shadow of Sars a year after the deadly epidemic struck the city. This time, however, it is the financial health of companies that is in the spotlight.

Jardine Lloyd Thomson, the city's second-largest insurance broker, last month came up with a business interruption insurance programme.

Backed by American International Group, the product covers businesses whose premises face the risk of being shut down because of infectious diseases, with a maximum insured amount of US$10 million.

The company's chief operating officer, Nick Cousins, admits the product will probably find little appeal to businesses outside the hotel industry.

The likelihood of restaurants or shopping malls being ordered to shut down for more than three days - the minimum length of time needed to trigger the coverage - is too low, he says.

Although none of the city's more than 80 hotels was shut down during last year's outbreak, the company no doubt had the ordeal of the Metropole Hotel in Mongkok - the nexus of the infection - in mind when designing the product.