The financial sector in Hong Kong praised the new initiatives permitting mainland branches of Hong Kong and Macao banks to open foreign-currency and renminbi bank card businesses for customers who are not domestic residents.

Financial industry experts said the new measures will help the country to further promote high-level opening-up and create a fairer business and market competition environment.

The State Council has approved two agreements related to the Closer Economic Partnership Arrangement (CEPA) amendment for the Hong Kong and Macao SARs, scrapping the restriction that prevented mainland branches of Hong Kong and Macao banks from engaging in bank card opening businesses. The amendment will be implemented on March 1.

The National Financial Regulatory Administration drafted a notice on Thursday to clarify matters related to the new policy. The measure applies to mainland branches of commercial banks in Hong Kong Special Administrative Region and the Macao Special Administrative Region that were established with in accordance with the Chinese mainland’s laws and regulations.  

“The measure will help increase financial support for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), promote the interconnection of cross-border trade and cross-border finance in the Greater Bay Area, and enable the mainland to establish closer economic and trade relations with Hong Kong and Macao,” BOCOM International Holdings Company Director Tan Yueheng said in response to enquiries from China Daily.

The BOCOM director added that the new initiatives will help enrich the diverse application scenarios in which the renminbi is used and promote its internationalization. “It will also allow Hong Kong and Macao banks to enjoy more preferential market access treatment, help enhance the high-level development of financial services of Hong Kong and Macao banks' mainland branches, and take the lead in seizing mainland opportunities,” Tan told China Daily.

For the banks to fulfill their responsibilities, the mainland branches must protect the legitimate rights and interests of consumers by enhancing their system construction, compliance management and risk control measures. They must also strive to ensure network security, data security and business continuity management, and effectively protect personal information in strict observance of the relevant laws, regulations and regulatory requirements.