FINANCE

Hong Kong Tightens Scrutiny of Mainland Chinese Investment Accounts

Published: May. 27, 2026 10:11 p.m. GMT+8

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The Hong Kong Monetary Authority issued a regulatory circular requiring Hong Kong-registered banks to implement the same additional control measures when opening investment accounts for clients from the Chinese mainland. Photo: VCG

Hong Kong’s banking regulator has told locally incorporated banks to impose stricter controls when opening investment accounts for Chinese mainland clients, extending compliance requirements already imposed on licensed brokerages.

The move suggests Hong Kong banks are being drawn into a broader regulatory campaign aimed at curbing illegal cross-border securities, futures and fund activity involving mainland investors.

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What Happened When

May 22, 2026：: UP Fintech Holding Ltd., Futu Holdings Ltd. and Long Bridge HK Ltd. were fined a combined 2.3 billion yuan ($338 million). A circular was issued by Hong Kong’s Securities and Futures Commission (SFC).

Before May 26, 2026：: The Hong Kong Monetary Authority (HKMA) issued a circular requiring banks registered in Hong Kong to adopt additional controls for mainland clients opening new investment accounts.

May 26, 2026：: Some mainland customers reported that Bank of China (Hong Kong) Ltd. discouraged them from opening investment accounts. Another Chinese joint-stock bank suspended investment-account openings for customers holding only mainland identification documents. Some mainland customers said Bank of China (Hong Kong) staff told them the bank would only permit savings-account openings if clients could not demonstrate that their investment funds were lawfully sourced from overseas.

Year ended May 22, 2026：: Banks are required to review dormant accounts, identifying investment accounts held by mainland investors that had zero balances and no trading activity during this period.

Within next three months from date of HKMA circular (before May 26, 2026)：: Banks must complete reviews related to forged documentation covering accounts opened since January 2023 (except for periods specifically exempted by the HKMA). Banks are also required to review dormant accounts over the next three months.

Within six months after reviews conclude：: Banks must close problematic accounts identified in the forged-documentation review. Accounts that fail to complete the required procedures (for dormant accounts) must be closed within six months.

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