Hong Kong banks report decline in customers seeking new notes for ‘lai see’ amid rise of electronic channels, economic uncertainties

Name: Festive Chinese red packets are more than just a tradition
Uploaded: 2021-02-13T04:00:13.000Z
Duration: 1 min 35 s
Description: Festive Chinese red packets are more than just a tradition

There is a major push to get people to give ‘lai see’ electronically, as Hong Kong’s coronavirus outbreak has not yet been brought under control

HSBC is encouraging customers to use PayMe or FPS, but will provide new notes and festive ‘lai see’ envelopes to those without access to digital channels

Reading Time:3 minutes

Why you can trust SCMP

All of Hong Kong’s banks will give lai see to their staff electronically when they return from their holidays. Photo: Shutterstock Images

Enoch Yiu

Published: 12:00pm, 13 Feb 2021Updated: 12:00pm, 13 Feb 2021

All major Hong Kong banks have reported a decline in the number of customers approaching them for new banknotes for “lai see” purposes amid an increase in electronic transfers and signs of economic uncertainties.

HSBC, the city’s largest bank and one of its three currency-issuing lenders, said it had seen a drop of more than 20 per cent in notes exchanged year on year amid the Covid-19 pandemic. It was also promoting the use of its PayMe app for lai see with lucky draw prizes worth more than HK$3.8 million (US$490,000) in aggregate.

“In support of the Chinese tradition of lai see giving, HSBC is encouraging its customers to go digital this year using PayMe or the Faster Payment System (FPS). However, we continue to provide a notes exchange service and offer festive lai see envelopes for customers, especially those without access to digital channels,” said Maggie Ng, the bank’s head of wealth and personal banking in Hong Kong.

It is a Chinese tradition that married couples give lai see or blessing money to children, or to those not yet married, during the first seven days of Lunar New Year, which starts on Friday, February 12, this year. New banknotes are usually preferred for this. Companies will also give lai see to their staff on the first day they return to work after their holiday break.

Up until Lunar New Year in 2020, about 350 million banknotes worth almost HK$10 billion on average were exchanged within the two weeks before the holiday every year, data from Hong Kong Monetary Authority shows.

01:35

Festive Chinese red packets are more than just a tradition

Standard Chartered and Bank of China (Hong Kong), the city’s two other currency-issuing lenders, also reported a decline in notes being exchanged for lai see. A Standard Chartered spokesman said the number had fallen by a third. Others, such as Bank of East Asia and Hang Seng Bank also reported declines.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x