Advertisement
Advertisement
Greater Bay Area
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
A border crossing facility in Shenzhen, Hong Kong’s neighbour to the north. Only one type of account opened in Hong Kong requires a trip to the mainland. Photo: Bloomberg

Explainer | As China allows more Hong Kong lenders to remotely open Greater Bay Area bank accounts, here is what you need to know

  • More banks will be allowed to open accounts remotely for people who want to use Alipay, WeChat Pay or ATMs, sources say
  • Customers will need a mainland mobile phone number and address to open a full services bank account

Regulators in Hong Kong and mainland China are working to expand a pilot that will make it easier for people to remotely open bank accounts in the Greater Bay Area development zone, two sources familiar with the matter said.

Under a pilot scheme introduced by Beijing in March last year, Bank of China (Hong Kong), one of the city’s three note-issuing banks, started allowing residents to open mainland accounts without having to visit China in person.

“The service has been well received, with over 100,000 successful applicants so far,” said Stephen Chan, general manager of the bank’s personal banking and wealth management department.

Hong Kong will attract listings by international companies, not just Chinese firms, as Greater Bay Area opens up

The pilot’s success has prompted regulators to expand the scheme to other lenders, the sources said.

Here is what you need to know about opening bank accounts in the Greater Bay Area.

What type of bank account can you open?

In China, banks offer three types of accounts, each with different features and restrictions. For those who only want to travel in the area and use e-wallets to pay for meals, train tickets or shopping, a type 3 bank account will suffice. After opening such an account, one can link up their banks and transfer money to popular e-wallets such as Alipay, WeChat Pay or others. Daily transfers are, however, limited to 2,000 yuan (US$286), while the annual limit is 50,000 yuan. ATM and other banking services are not provided with these accounts.

02:35

China's ambitious plan to develop it own ‘Greater Bay Area’

China's ambitious plan to develop it own ‘Greater Bay Area’

Those who work in the area and need a higher transfer limit and an ATM card will need a type 2 account. The daily limit on these accounts is set at 10,000 yuan, while a maximum of 200,000 yuan can be transferred in a year. ATM cards can be used to withdraw up to 1,000 yuan per day.

Type 1 accounts offer the most comprehensive set of services, from time deposits, loans, remittances, payments and investment to wealth management services. There is no limit on transfers within mainland China, Hongkongers can only remitted 80,000 yuan per day to their mainland accounts.

How do you apply for an account?

The type 1 bank account will require an in-person visit to a bank in mainland China. Some local lenders such as China Construction Bank (Asia), HSBC, Bank of East Asia, Standard Chartered Bank and Hang Seng Bank allow local customers to fill in the account opening documents in their Hong Kong offices before they visit their mainland units to complete ID verification and the account opening process. These customers need to have a mainland Chinese residential address and a mainland mobile phone number. Hong Kong residents need to present their Mainland Travel Permit while foreigners need to show their passports and visas.

01:57

Construction begins for major sea crossing to link Shenzhen and Zhongshan in Greater Bay Area

Construction begins for major sea crossing to link Shenzhen and Zhongshan in Greater Bay Area

Visit a mainland branch on Sunday, as banks see fewer customers on this day than normal working days.

For those who want to open type 2 or 3 accounts, Hong Kong permanent residents can open these via the Hong Kong branches of BOC(HK). Foreigners, however, must go to China to open such accounts.

Can funds be transferred across the border?

Yes, provided that you have accounts in both Hong Kong and the mainland with the same bank. Bank of Communications, BOC, Industrial and Commercial Bank of China (Asia), HSBC, Standard Chartered Bank, Hang Seng Bank and Bank of East Asia all allow customers to transfer funds across the border through mobile and internet banking.

Post