Mainland investors face key deadline for inactive bank account reviews in Hong Kong; source of funds declaration is key to reactivating accounts

Odaily News: Recent reports indicate that some banks in Hong Kong have initiated a source-of-funds declaration process for certain existing mainland investment clients, setting deadlines such as August 20 (investment services may be suspended if not submitted) and September 12 (investment services may be terminated if not submitted). Previously, in response to requirements from the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority, some banks had already begun requiring newly opened mainland investor accounts to confirm that their source of funds is from legitimate overseas channels. This latest source-of-funds confirmation process targets existing mainland investor accounts, drawing attention and discussion. It is understood that some Hong Kong-licensed institutions, including HSBC Hong Kong and branches of Chinese-funded banks in Hong Kong, have indeed taken such measures recently, but the primary focus is on long-term "inactive accounts." (Yicai)