Hong Kong banks’ mainland credit cards will soon be available in mainland China, marking a significant step towards deeper financial integration under Beijing’s Greater Bay Area initiative, according to a South China Morning Post report.
Starting 1 March 2025, banks domiciled in Hong Kong and Macau will be allowed to launch a range of banking services, including issuing debit and credit cards.
The announcement, made by the National Financial Regulatory Administration (NFRA), lifts previous restrictions that prevented Hong Kong and Macau banks from offering bank card services to their mainland customers.
This new development is part of the Closer Economic Partnership Arrangement between the mainland and Hong Kong, as outlined in a recent statement on the NFRA website.
Major players such as HSBC, Standard Chartered, Bank of East Asia, and Hang Seng Bank stand to benefit significantly. Industry experts have welcomed this shift. Kenny Ng Lai-yin, a securities strategist at Everbright Securities International, shared,
“Big international players such as HSBC and Standard Chartered are eyeing further expansion in Asia, particularly mainland China. The easing of the restrictions will allow Hong Kong lenders’ mainland branches to provide more services to customers, enhancing their competitiveness against domestic mainland Chinese banks.”
Under the new rules, Hong Kong banks can issue both foreign currency and yuan-denominated cards to non-mainland-Chinese individuals, government entities, and corporate clients. However, for mainland Chinese residents, only foreign currency cards will be allowed.
Services will include card issuance, fund transfers, and withdrawals.
An NFRA spokesperson stated that the decision is part of broader efforts to open up China’s financial sector. The move would also foster integration within the Greater Bay Area, a plan launched in 2019 to connect Hong Kong, Macau, and nine mainland cities into a dynamic economic hub.
Aside from promoting cross-border trade and talent flows, the move also aims to enhance the quality of financial services provided by the mainland branches of Hong Kong banks. Banks will have to implement safeguards for online security, personal privacy, and other consumer rights as part of these changes.
This announcement follows other recent changes aimed at expanding banking services. Earlier this year, HSBC, Standard Chartered, and Bank of Communications joined the list of banks enabling Hong Kong residents to open mainland accounts remotely.
HKMA also has announced plans to enable small cross-border transactions using handphone numbers with mainland China by mid-year too.
These growing opportunities for connectivity include features like transferring money to apps such as Alipay or WeChat Pay, allowing customers to shop and dine on the mainland with ease.
Source of image: Edited from Freepik