UnionPay Ends Use of Bankcards for Life Insurance Purchases in Hong Kong

(Hong Kong, Beijing) – China UnionPay has forbidden the use of its bankcards for the purchase of life insurance policies offered by Hong Kong firms, closing a loophole that had been used by mainlanders to transfer money overseas as the yuan continues to depreciate.

The government-backed bankcard association firm announced Oct. 29 that all bankcards using its service cannot be used to buy Hong Kong insurance products, whether online or offshore. The embargo targets mainly life insurance, which accounts for the lion’s share of all insurance sales to mainlanders. Exceptions are made for policies closely related to travel, such as accident and injury insurance policies, which UnionPay considers to be current account transactions.