The race for HK$71 billion cash handout is heating up as more banks bait customers with gold bar, iPhone, and food vouchers

Name: Coronavirus in Hong Kong: where are we now?
Uploaded: 2020-06-17T00:00:22.000Z
Duration: 6 min 37 s
Description: Coronavirus in Hong Kong: where are we now?

HSBC extends its 10 per cent interest on short-term deposits rate to existing clients, dangles cash, iPhone to attract sign-ups

Gold bar and coins are among lucky prizes offered by Shanghai Commercial Bank in the competition

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Lenders are competing for customers to steer a bigger slice of the HK$71 billion cash relief to their banking network as the government prepares to make its first payout in July. Photo: Bloomberg

Enoch Yiu

Published: 8:00am, 17 Jun 2020Updated: 8:51pm, 17 Jun 2020

More lenders are dangling appetising incentives to steer as much cash as possible to their own platform as the Hong Kong government prepares to hand out HK$71 billion (US$9.2 billion) to residents from next month.

HSBC listed HK$10,000 cash among the top prizes in its lucky draw programme, rivalling the offers at China Construction Bank Asia and Standard Chartered. A tael of gold bullion, with a market value of HK$16,146 on Tuesday, is the ultimate prize in a Shanghai Commercial Bank promotion.

The race for customers is heating up with more lenders joining the fray as Hong Kong kicks off the online registration exercise for the HK$10,000 cash payout per person from June 21. The government expects the first electronic disbursement to verified applicants from as early as July 8.

The handout is a key part of Financial Secretary Paul Chan Mo-po’s budget plan for the current financial year to jump-start the economy ravaged by the coronavirus pandemic and social unrest. Hong Kong’s gross domestic product shrank 8.9 per cent last quarter from a year earlier, the worst on record, reflecting the full brunt of the viral outbreak.

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Coronavirus in Hong Kong: where are we now?

While the idea is to lighten Hongkongers’ financial burden, Chan expects the handout to help galvanise spending, equating the portion to about three months’ worth of retail sales in the city. Many, however, could end up preserving the cash as deposits in their accounts.

“While the payout is aimed at encouraging people to spend to stimulate the retail and restaurant sector, many will like to save the money for rainy days,” said Gordon Tsui, chairman of Hong Kong Securities Association. “Banks have to capture the pie as they can compete for new clients and cross-sell them new products.”