Updated
Updated · Reuters · Jun 4
HSBC, StanChart, Prudential Drop Up to 6.3% as China Tightens Offshore Account Access
Updated
Updated · Reuters · Jun 4

HSBC, StanChart, Prudential Drop Up to 6.3% as China Tightens Offshore Account Access

3 articles · Updated · Reuters · Jun 4

Summary

  • HSBC, Standard Chartered and Prudential fell 5% to 6.3% in London, while AIA lost 6.8% in Hong Kong after a report said mainland Chinese faced tighter curbs on opening offshore accounts.
  • South China Morning Post said Bank of East Asia's Shanghai branch had suspended opening Hong Kong accounts that allow overseas investment for mainland residents.
  • HSBC staff in Shanghai's Lujiazui financial district also reportedly warned that funds deposited into investment accounts must meet Hong Kong regulatory requirements.
  • The reported curbs hit financial groups seen as exposed to Chinese demand for Hong Kong banking, insurance and cross-border investment products.

Insights

As Beijing tightens its grip on capital, is Hong Kong's reign as Asia's top financial hub coming to an end?
China wants global investment but blocks its citizens' cash. Can it truly have it both ways?