Hong Kong's financial sector is ramping up marketing efforts to attract wealthy clients from mainland China during the National Day holiday. Amid recent government measures to tighten taxation on offshore assets for the affluent, banks are offering incentives ranging from K-pop concert tickets to cash rebates, preferential interest rates, and gold bars.
According to the South China Morning Post on October 1, HSBC is providing new high-net-worth clients with benefits worth up to HK$88,000 (approximately US$11,200). Gifts include invitations to National Day fireworks dinners, tickets to the China Open tennis tournament in Beijing, and K-pop concert tickets.
DBS is offering a cash rebate of HK$1,500 to clients who deposit HK$1 million and open new accounts at its Tsim Sha Tsui branch from October 1 to 10. Meanwhile, Industrial and Commercial Bank of China (ICBC) Asia is applying a preferential interest rate of 6% on new clients' time deposits.
OCBC has opened a new branch in Central just two days before the holiday, focusing on high-net-worth individuals with total assets exceeding HK$8 million (approximately US$1 million).
This surge in marketing comes as Chinese authorities have intensified tax enforcement on income from offshore trusts and insurance investments. Taxation on offshore trust income began in July, while taxation on offshore insurance income started in August. This week, regulations on mainland investors' overseas stock trading have also expanded to include Chinese securities firms operating in Hong Kong.
Despite these challenges, Hong Kong banks are expanding their services to meet the strong demand for offshore asset management among wealthy mainland clients. OCBC Hong Kong plans to increase its local workforce by 100 by next year, following a 40% year-on-year increase in asset management revenue from January to August.
Hong Kong banks view the National Day holiday, which is expected to attract 1.29 million mainland tourists, as a prime opportunity to draw in new clients. The Hong Kong government anticipates a significant influx of visitors during this period.
Major banks in Hong Kong are also extending their operating hours during the seven-day holiday. Bank of China (Hong Kong) is offering a chance to win a 50-gram gold bar to clients who complete designated asset management transactions in person during the holiday.
The focus on attracting mainland clients is crucial for Hong Kong banks, as asset management is a key growth area. Last year, Hong Kong surpassed Switzerland to become the world's largest cross-border asset management hub.
A report released by the Hong Kong Association of Banks in early September indicated that banks view asset management as their primary growth driver through 2030. The proportion of assets under management (AUM) from mainland clients is projected to increase from 59% to 68% over the next five years.
* This article has been translated by AI.
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