Hong Kong brokers brace for hard times in 2019, urge regulators to speed up access to Greater Bay Area
- Smaller brokerages lobby for relaxation on marketing to the Greater Bay Area
- SFC has agreed to waive the requirement for a face-to-face meeting for new account openings by mainland residents, according to lawmaker
Hong Kong’s smaller brokerages have lobbied local regulators to introduce measures that would allow them to broaden their market to the 70 million residents in the “Greater Bay Area”.
Christopher Cheung Wah-fung, a lawmaker representing the financial services sector, said such measures were needed to help smaller companies survive.
“The year 2018 was bad, but even tougher times are expected in 2019. The US-China trade war and Brexit have added to market uncertainties. Investors may avoid the stock market in 2019, and it could be tough for small brokers in Hong Kong,” Cheung said in a media briefing.
The Shanghai Composite Index has slumped 24.6 per cent this year, making it the worst- performing major gauge worldwide for the second consecutive year. Hong Kong’s benchmark Hang Seng Index is also poised to lose more than 10 per cent this year, with just half a day of trading left today.
Cheung said the Securities and Futures Commission had approved a proposal that would allow mainland investors to open accounts online without the need for application in person.
At present, mainlanders who travel to Hong Kong can open an account by visiting the office of a local broker, but the brokerages are not permitted to market directly to them.
Cheung said the regulator had agreed to waive the requirement for face-to-face meetings as long as investors could certify their identification and personal information through an authorised body such as the China Financial Certification Authority.