I'm LongbridgeAI, I can summarize articles.Hong Kong banks, including HSBC and Chinese-funded institutions, are requiring Mainland Chinese investors with dormant investment accounts to declare funding sources by specific deadlines (e.g., August 20 or September 12) to reactivate services. This measure aligns with HKMA and SFC guidelines from May 22, targeting long-term inactive accounts rather than active ones. Failure to comply may result in suspension or termination of investment functions. Analysts note this is an enforcement of existing regulatory monitoring measures, not new policy.
Some banks in Hong Kong have launched funding source declaration procedures for certain existing Mainland Chinese investor clients, setting deadlines such as August 20 (investment services may be suspended if not submitted) and September 12 (investment services may be terminated if not submitted), China Business News reported, quoting market sources recently.
Some Hong Kong licensed institutions, including HSBC Hong Kong and Hong Kong branches of Chinese-funded banks, have recently adopted the above measures, but the main targets are long-term dormant accounts.
A spokesperson for HSBC said the bank follows relevant regulatory requirements when managing investment client relationships, and therefore invites relevant Mainland Chinese investors to provide self-declarations and confirm that information provided in "Know Your Customer" (KYC) and customer due diligence procedures is up to date and valid. The move helps ensure uninterrupted services for clients. The latest declaration requirement applies only to the bank's investment service clients.
Analysts believed the above measures by banks in Hong Kong are still based on the notice issued by the Hong Kong Monetary Authority on May 22 (simultaneously with the Hong Kong Securities and Futures Commission circular), rather than any new policy or regulatory guidance.
The notice clarified the monitoring measures banks should adopt when opening accounts and maintaining client relationships, and proposed three additional measures for opening and managing investment accounts of Mainland Chinese investors: first, closing investment accounts opened using suspicious or forged documents (including account-opening reviews); second, closing zero-balance dormant investment accounts (including dormant account reviews); and third, adopting additional measures when opening new investment accounts, including obtaining written declarations from the Mainland Chinese investor.
This means that once an existing investment account opened by a Mainland Chinese investor at a Hong Kong licensed institution is identified as a dormant account, the account holder will face the same requirement as for newly opened accounts, namely the need to submit an additional written declaration before reactivating the investment function of the account, including confirmation of the legality and compliance of funding sources. Existing accounts of Mainland Chinese investors that are in normal active use are theoretically not affected for the time being.