New Regulations Allow Hong Kong and Macao Banks to Offer Personal Bank Card Services in Mainland China

In a significant move to enhance financial integration and cross-border banking services, the National Financial Regulatory Administration (NFRA) recently issued a new Notice on Matters Relating to the Opening of Bank Card Business by Mainland Branches of Hong Kong and Macao Banks (hereinafter referred to as the “Notice”).

The notice, which will take effect on 1 March 2025, lifts previous restrictions on account opening controls, allowing these banks to offer foreign currency bank cards within mainland China and RMB-denominated bank cards to citizens other than Chinese nationals. This development marks a pivotal step in promoting financial inclusivity and facilitating cross-border economic activities.

• Key sectors of the Notice

1. The mainland branches of banks in Hong Kong and Macao are permitted to operate foreign-currency bankcard business and RMB bankcard business for customers other than Chinese nationals.

1. The mainland branches of banks in Hong Kong and Macao are subject to a reporting system for the opening of a debit card business and an approval system for the opening of a credit card business.

1. The reporting procedures and material requirements for the opening of debit card business by mainland branches of banks in Hong Kong and Macao.

1. The mainland branches of Hong Kong and Macao banks applying to start credit card business shall refer to the implementation of the relevant provisions of the Implementation Measures of the China Banking and Insurance Regulatory Commission for the Administrative Licensing Items concerning Foreign-Funded Banks in respect of the start-up of credit card business.

• The procedures for Hong Kong and Macao banks to set up multiple branches in the Mainland to start a bankcard business, and the procedures for the management bank that has no plan to start a bankcard business for the time being but intends to start a bankcard business in other branches.

• If the mainland branches of banks in Hong Kong and Macao are required by law to pass the examination and approval of other administrative departments to start a bank card business, they shall do so in accordance with their regulations.

• It requires mainland branches of banks in Hong Kong and Macao to effectively protect the legitimate rights and interests of consumers, strengthen system construction, compliance management, and risk control, enhance network security, data security, and business continuity management, effectively protect personal information, and strictly comply with relevant laws, regulations and supervisory requirements and requires the management bank to fulfill the responsibility of coordinating management.

• To press down on the main supervisory responsibilities of the local supervisory bureaus, requiring the local supervisory bureaus to strengthen the supervision and management of the bankcard business of the mainland branches of banks in Hong Kong and Macao, and urging the institutions to carry out the bankcard business in accordance with the laws and regulations, to guard against risks effectively, and to protect the legitimate rights and interests of consumers.

• Conclusion

This represents a significant step forward in China’s financial liberalization efforts. By lifting restrictions on account opening controls and expanding the scope of personal bank card services, the policy not only benefits customers but also strengthens the integration of mainland China’s financial markets with Hong Kong, Macao, and the global economy.

As the implementation date approaches, companies and individuals alike should stay informed about these changes and explore the new opportunities they present.

For more details on the NFRA notice and its implications, visit the official website or contact us. Stay tuned to our weekly updates for the latest developments in the business and financial sectors.