Beijing has announced its decision to allow Hong Kong banks to issue credit cards for customers on the mainland from March 1, 2025.
Following this announcement, Beijing is set to give Hong Kong and Macau-domiciled banks the possibility to launch a range of solutions on the mainland, including credit cards. The initiative represents the latest of a series of steps taken to integrate the financial sectors of China and its two administrative regions.
In addition, officials from the National Financial Regulatory Administration (NFRA), an agency under the State Council that oversees the financial sector, also mentioned that would lift restrictions that currently prohibit Hong Kong and Macau banks from offering any type of bank card services to their customers on the mainland.
More information on the announcement
The new rules introduced under the Closer Economic Partnership Arrangement between the mainland and Hong Kong are also expected to allow mainland units of Hong Kong commercial banks to issue debit cards and credit cards to customers from March 1, 2025. At the same time, Hong Kong’s major banks such as HSBC Holdings, Standard Chartered Bank, Bank of East Asia, Hang Seng Bank, and others will be given the possibility to benefit from the move.
The easing of the restrictions is expected to allow Hong Kong banks’ mainland branches to provide more services to customers, as well as enhance their competitiveness against domestic mainland Chinese banks. Furthermore, institutions will be enabled to offer both foreign currency bank cards and CNY bank cards for non-mainland-Chinese individual clients, government departments, and corporate users.
However, Hong Kong banks will only be allowed to offer foreign currency bank cards to mainland Chinese residents. The banking services will include issuing debit cards and credit cards, withdrawals, and fund transfers, as the purpose of easing the rules will accelerate the process of further opening up the mainland’s banking and finance sector. This aims to complement efforts in order to promote the integration of the Greater Bay Area, along with closer cooperation between the financial sectors of mainland China.
After opening a type two account at a designated branch in Hong Kong, customers can transfer up to USD 1.367 (CNY 10.000) per day or USD 27.600 (CNY 200.000) per year to the mainland account with the same bank. The process of opening the account is free, and there is no minimum balance requirement. At the same time, customers will be enabled to transfer money to payment apps such as Alipay or WeChat pay in order to shop and dine on the mainland.
Source: The Paypers
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