Hong Kong's financial sector to gain from new cross-border services: HKMA

The People's Bank of China and the Hong Kong Monetary Authority (HKMA) are working together to introduce cross-border mobile payments account openings and other wealth management services as part of the Greater Bay Area integration.

"We will study with the PBOC and other mainland officials how to introduce more cross-border mobile payments to allow people in Hong Kong and the mainland to be able to use their smartphones with e-wallet mobile apps to make payments. We want to see more e-wallets to make it easier for cross-border retail payments," the authority's chief executive Norman Chan Tak-lam told lawmakers on Tuesday, the SCMP reports.

"We want to make it easier for Hong Kong residents to be able to open bank accounts in the mainland, particularly the Greater Bay Area," he added.

The plan will also allow qualified Hong Kong and Macau banks and insurance companies to set up in the commercial development zones of Qianhai, Nansha, and Hengqin. The goal of the integration is to facilitate wider cross-border sales of mutual funds, insurance and other wealth management products.

However, Norman Chan stressed that the talks must be held with the PBOC in addition to Greater Bay Area officials. "Many of these measures including cross-border fund flows and capital account opening would need to get the approval by the PBOC," he said.

He added that the success of the project would also hinge on gaining the support of other banks and financial organisations.