China approves one-stop bank account for Hong Kong residents, taking the first step to liberalise financial services on the mainland
- Existing customers of Bank of China (Hong Kong) can open Bank of China accounts without having travel to mainland
- The account comes in two options, and both are tied to mobile payment services
China has chosen the Hong Kong unit of the country’s largest overseas lender to roll out a cross-border account that would break down barriers between the two jurisdictions, making it easier for local residents to gain access to banking services in the world’s second-largest economy.
Bank of China (Hong Kong), one of the city’s three currency printers, would allow existing customers to open bank accounts with its Beijing-based parent Bank of China without having to visit mainland China in person.
The new account, denominated in the Chinese currency, will come in two options: the first with access to teller machines throughout mainland China, or a second option with a lower transaction limit, without ATM access. Both options are tied to mobile payment services such as Tencent Holding’s WeChat Pay, and Ant Financial Services Group’s AliPay.
The new service, kicking off on Wednesday, connects Hong Kong’s residents to China’s fast-growing cashless economy and simplifies the process for gaining access to financial services, bringing the city closer to the booming aggregation of cities known as the Greater Bay Area.
The bank “will continue to expedite the innovation of cross-border financial products and services to fulfil the demand for cross-border financial services among those Hong Kong people who work, live and travel in the Greater Bay Area,” said Bank of China (Hong Kong)’s deputy chief executive Ann Kung. “The bank is set on making positive contributions to the development of the Greater Bay Area into a quality zone for living, working and travelling, as well as a vibrant world-class city cluster.”