Hong Kong banks and mainland banks are two separate financial systems, so there are differences in many ways. Many mainland friends do not know much about the account opening, use and maintenance of Hong Kong banks.
To this end, we have compiled 8 common questions about Hong Kong bank accounts, which are very practical, come and see if you have the same questions!
NO.1. About the advantages of Hong Kong bank accounts
1. Currency is freely convertible
Due to the capitalist system in Hong Kong, bank accounts are not subject to foreign exchange controls and can receive payments from all over the world, making it easy to solve the problem of cross-border trade settlement.
2. The check business is convenient
A Hong Kong bank account supports cheque business regardless of geographical location, making it convenient for customers to conduct cross-border transactions.
3. Not subject to foreign exchange control
Compared with the Mainland, Hong Kong bank accounts do not have foreign exchange controls, and the flow of funds is very free. It is worth noting that the annual foreign exchange quota per person in the mainland is only US$50,000, and if greater capital flow is required, a Hong Kong bank account is a better option.
4. Meet investment needs
As an international financial centre, Hong Kong has a well-established stock market and investment environment, and many investors will choose Hong Kong as an investment port, and a Hong Kong bank account can help them better manage their investment funds and conduct stock trading smoothly.
All in all, a Hong Kong bank account is a powerful tool that can play an important role in international trade, financial investment, currency exchange, etc.
NO.2. The role of Hong Kong bank accounts
The role of a bank account in Hong Kong falls into six broad categories:
1. Global asset allocation
Foreign exchange savings
Speculate on Hong Kong stocks/US stocks
Overseas property allocation
Purchase and renewal of overseas insurance
Other overseas asset allocation
2. Overseas investment/financing
Financing Accounts/Investment Accounts
3. Travel and study abroad
For consumer use
4. Immigration
5. Overseas medical use
6. Cross-border e-commerce
Receiving money from abroad
Overseas payment (purchase of equipment, raw materials, service tools)
NO.3. 8 questions about Hong Kong bank accounts
1. Where can I apply for a Hong Kong bank account?
The handling methods can be divided into two categories: opening an account remotely in the mainland and opening an account through Hong Kong.
There are two ways to open a remote account in the Mainland:
First, it is handled through the recommendation of the branch of the same name in the mainland, and the specific requirements are determined according to the branch. This method requires the recommendation of the Mainland branch to help the customer open a Hong Kong branch account;
The second is to open an account remotely through video witnessing, which requires a lawyer to serve as a third-party witness.
There is no difference between the two ways to open a remote account in the Mainland, and there is no difference.
Crossing the port to open an account is a quick way to open an account, and its benefits are that you can pick up the card on the same day and fill in any missing information on the spot, including ID card and signature verification. This service is available from banks such as HSBC in Hong Kong, Standard Chartered, Bank of China, Wing Lung and BEA.
In short, there are a variety of options for how to apply for a Hong Kong bank account, depending on your personal needs.
2. Can I apply for a Hong Kong bank account by myself?
In practice, the success rate of opening a bank account in Hong Kong is very low. For people who are trying to open an account in Hong Kong for the first time, they may think that opening a bank account in the mainland is as easy as opening an account in Hong Kong, but this is not the case.
Due to the "one country, two systems" policy, Hong Kong's financial system is different from that of the mainland, so mainland banks are relatively few qualified to apply for Hong Kong bank accounts, and they often need to meet a higher deposit threshold. The essence of banks is to win more high-net-worth customers, so it is not easy to open a Hong Kong bank account on your own.
If you want to successfully apply for a Hong Kong bank account, professional advice is very important. With the support of consulting services, you can quickly clarify the exact process and understand the documents and specific requirements for your application.
In addition, professional consulting services can also effectively improve the success rate of your application, and help you meet the bank's requirements to the greatest extent, and finally successfully apply for a Hong Kong bank account.
If you want to enjoy professional consulting services and a smoother bank account opening application process in Hong Kong, then please contact us and we will be happy to help you.
3. Is there no foreign exchange control on Hong Kong bank accounts?
Many people think that as long as they have a Hong Kong bank account, they will be able to bypass any foreign exchange controls and even deposit RMB directly. But this is a misunderstanding. In fact, the key is how to transfer funds to a Hong Kong account.
Some people also mistakenly believe that the foreign exchange limit of US$50,000 refers to the limit of each bank account, but in reality, this limit is the amount of foreign exchange that each person can exchange each year, regardless of the number of bank accounts opened in Hong Kong.
Only within the foreign exchange quota can we convert the funds into foreign currencies or wire transfer to a Hong Kong account. From January 1 to December 31 of each year, if the quota is not used, the quota will be automatically reset to zero, and it will be recalculated in the following year.
In order to avoid misunderstandings and confusion, we need to properly understand the relevant regulations of Forex. Only in this way can we effectively apply the foreign exchange control policy, simplify the procedures for remittance and foreign exchange transactions, and improve the efficiency of capital operation.
4. What should I consider when opening a Hong Kong bank account?
For those who open a bank account in Hong Kong, the most important question is which bank account to choose. When considering banking options, the vast majority of customers will pay more attention to the presence or absence of account management fees. As a result, most customers tend to choose a bank with no account management fees as their first choice.
Secondly, customers will also consider the cost of the transfer when choosing a bank. Generally speaking, there are not many fees for transferring money between bank accounts in Hong Kong, and it can only lead to higher costs when it comes to overseas or domestic transfers.
However, if the client's operations are infrequent or only have ordinary investment needs, the cost of each transfer is not high, and the client's investment cost is still low compared to the account management fee.
5. How to choose the right bank for you?
In the end, which Hong Kong bank to choose to open an account depends on the specific purpose of the account:
Overseas living and living sojourn use
First of all, depending on where the core residence is, for example, Southeast Asian countries represented by Singapore, Malaysia and Thailand, you can consider banks with Singapore capital background, such as OCBC Wing Hang, if you often travel to Asia, Africa, Europe and the United States to live, you can choose Standard Chartered and HSBC.
When applying for an account opening, you can apply for a Visa or Master Card physical card, which will be more acceptable for use overseas.
Hong Kong households receive foreign exchange, and the mainland lives and consumes
In this case, you can give priority to road banks, such as the note-issuing bank Bank of China (Hong Kong), etc., Hong Kong multi-currency foreign exchange collection, settlement of foreign exchange to the mainland use, it is best to open an account with a UnionPay card.
Hong Kong local investment, wealth management and real estate
In addition to foreign and Chinese banks, you can also choose Hong Kong local banks such as Hong Kong Bank of East Asia, Nanyang Commercial Bank, etc.
6. What should I pay attention to when opening an account through Hong Kong?
For those who live in the southern region or can directly take the MTR to Hong Kong, opening an account through Hong Kong is a good choice compared to other ways to open an account. However, if you plan to travel to Hong Kong to open an account on your own, you need to pay attention to the following points. First of all, the success rate of self-handling is relatively low, and the bank will have a record.
Secondly, you need to know the following details:
First, check whether you have a Hong Kong and Macau Permit and whether the Permit is within its validity period. Generally speaking, the Hong Kong and Macau pass is valid for 10 years, but it is required to be valid within 6 months when opening an account with a bank in Hong Kong, so be sure to check it in advance and replace it in time if it expires.
Second, has your Hong Kong and Macau Permit been endorsed? If you choose to open an account in Hong Kong, then you will definitely need an endorsement. The endorsement is very simple, you just need to go to the local immigration hall to get it. Friends in Shenzhen can choose to complete the endorsement at the self-service endorsement machine.
Third, the cost of travel needs to be taken into account. For those friends who are in the cities around Hong Kong or going to Hong Kong for business, it is relatively convenient to open an account in Hong Kong. However, for those who live in remote areas of the north, they need to consider the cost of round-trip airfare and high-speed rail.
Fourth, we need to take into account the cost of time. Generally speaking, the time to open an account is recommended from Monday to Friday. Banks in Hong Kong are open from 9 a.m. to 5 p.m., and some banks are also open on Saturdays, but generally from 10 a.m. to 3 p.m. If you have a job or business on your own, then if you take leave to open an account in Hong Kong, you need to consider whether it will cause various inconveniences to your work and business.
Fifth, if you go to the bank without making an appointment in advance, you will be at risk of being rejected. Even if you go to the bank to make an appointment to open an account, you may not be successful in opening an account. This is mainly due to the fact that banks have to screen high-net-worth clients before they can purchase their wealth management products, and at the same time, banks also need to prevent money laundering and other violations. Therefore, you need to understand the bank's compliance requirements in advance and find a professional to assist you in filing documents and making appointments, so that the success rate will be higher.
Overall, opening an account in Hong Kong is a very beneficial option, but it is important to consider these details carefully before you go to Hong Kong to open an account on your own.
7. Can a Hong Kong bank account be bound to WeChat for consumption in the Mainland?
Yes, there are currently 5 Hong Kong banks that support binding to WeChat, namely Bank of China Hong Kong, CITIC International, ICBC (Asia), Dah Sing Bank, and China Merchants Wing Lung.
The only difference is that when using WeChat Pay, it is swiped in Hong Kong dollars instead of RMB, and the settlement is calculated according to the current exchange rate.
If you choose [Hong Kong Wallet] for payment, transfer, red envelope, etc., the operation is in Hong Kong dollars, and the recipient must also use the [Hong Kong Wallet] to receive your account.
Generally speaking, the most used for [Hong Kong Wallet] in the mainland is daily expenses, if it is used for shopping, the exchange rate of [Hong Kong Wallet] to Hong Kong dollars is converted according to the real-time exchange rate of the bank, which does not occupy the annual foreign exchange settlement quota (the foreign exchange settlement limit is generally 5W US dollars/year).
8. How to maintain a Hong Kong bank account?
When using a Hong Kong bank account, please pay attention to the following points to avoid possible risks and problems.
First of all, it is advisable to avoid frequent transfers between Hong Kong bank accounts and other bank accounts in a short period of time to avoid attracting the attention of anti-money laundering regulators.
In addition, frequent remittances from a domestic bank account to a Hong Kong bank account with the same name may also be considered suspicious activity. Therefore, it is advisable not to send money more than once a month.
Second, you should try to avoid frequent deposits with multiple securities companies to avoid being suspected of money laundering. Such behaviour, while in some cases may be normal trading activities, may also be mistaken for misconduct.
Third, when opening an account, it is important to ensure that the information provided such as mailing address, mobile phone number, and common email is valid so that the bank can contact and conduct compliance investigations.
If you receive a questionnaire from the bank, especially the compliance questionnaire, you should provide a response in a timely manner and actively cooperate with all relevant investigations of the bank to avoid risks such as account closure.
Finally, if the foreign exchange quota of US$50,000 per person per year has been reached, it should be prohibited to borrow other people's foreign exchange purchase quota to purchase foreign currency and transfer it to a Hong Kong bank account, as this may lead to stricter regulatory scrutiny.