HSBC, StanChart, Prudential Shares Fall Over China Offshore Account Tightening
Impact of Offshore Account Restrictions on Financial Services Firms
By Samuel Indyk
Market Reaction to Chinese Regulatory Changes
LONDON, June 4 (Reuters) - Shares in British financial services firms with exposure to China fell on Thursday, after a report in Chinese press said that residents of mainland China were facing greater constraints on opening offshore accounts at major Hong Kong banks.
Details from the South China Morning Post
The South China Morning Post reported that the Shanghai branch of the Bank of East Asia had suspended opening Hong Kong accounts that allowed overseas investments for those on the mainland.
Share Price Movements
Shares in HSBC, Standard Chartered and Prudential fell sharply in London, all down between 5% and 6.3%. AIA Group was down 6.8% in Hong Kong.
Compliance and Regulatory Concerns
The SCMP also said that staff members at a branch of HSBC in Lujiazui cautioned that all funds deposited into investment accounts must comply with Hong Kong’s regulatory requirements.
Company Responses
HSBC, Prudential and Standard Chartered were not immediately available for comment when contacted by Reuters.
(Reporting by Samuel Indyk; Editing by Amanda Cooper)
