HSBC, AIA and Prudential sink on Hong Kong account curbs
Why it matters: tighter checks on mainland clients could slow a lucrative flow of cross-border banking and insurance sales in Hong Kong.
HSBC Holdings, AIA Group and Prudential shares fell after a report said some banks had suspended opening Hong Kong accounts for mainland Chinese clients that could be used for overseas investments. The South China Morning Post reported that Bank of East Asia’s Shanghai branch stopped opening such accounts, while HSBC warned that money deposited into investment accounts must meet Hong Kong regulatory requirements. The moves come as Hong Kong lenders step up scrutiny of mainland clients amid a broader effort to curb capital flight after Beijing tightened enforcement on illegal cross-border trading. The pressure could also hit insurers including AIA and Prudential, which depend heavily on mainland visitors buying policies in Hong Kong.