Per reporter Li Yuwen Pan Ting Tu Yinghao Per editor Liao Dan
Silicon Valley Bank and Centennial Credit Suisse have exploded one after another, the European and American banking storm continues to ferment, and various rumors in the market continue. Recently, it was reported that more than $760 billion and $1650 billion of Chinese assets were withdrawn from the United States and Switzerland, mainly into Singapore and Hong Kong. Subsequently, rumors such as Hong Kong bank employees stopping vacation and HSBC branches operating continuously 7 days a week also attracted market attention.
Market rumors of Silicon Valley and Credit Suisse incidents have led to a lot of European and American funds coming to Hong Kong recently, for the question of "whether the data of opening accounts and funds in Hong Kong have increased a lot compared with the past", some relevant people in the business of domestic banks in Hong Kong told the "Daily Economic News" reporter that it has "returned to the peak period".
In addition, the reporter also learned from HSBC that three branches of HSBC have trialed the special business arrangement on Saturdays and Sundays to cope with the increase in service demand after full customs clearance.
In addition, in terms of insurance, the reporter also consulted with different insurance agents and institutions, and relevant practitioners said that sales have surged recently. A Prudential agent told reporters that their company's payment office queued up every day, and customers who had accumulated for 3 years were ready to apply for insurance, "Some customers have really waited for several years." ”
Hong Kong Monetary Authority: We will give you a response in due course
Recently, there has been news in the market that a lot of funds from Europe and the United States have come to Hong Kong, and the industry speculates that it is the financial concerns caused by the Silicon Valley and Credit Suisse incidents. So, has the recent data on account opening, funds and other data in Hong Kong increased a lot compared with the past? In this regard, a relevant person in the business of domestic banks in Hong Kong told every reporter: "Back to the peak period. ”
So, has the Hong Kong Monetary Authority detected a large influx of deposits from its banks in recent times? If so, can it be confirmed that such deposits are from high net worth individuals? In this regard, every reporter interviewed the Hong Kong Monetary Authority by email, and the other party said that "it will reply in due course".
As for the news that HSBC branches are open 7 days a week, every reporter also learned from HSBC that since the full lifting of the new crown epidemic-related entry prevention and control measures in Hong Kong in early February, the number of visitors to Hong Kong has continued to rise, and the number of overseas Hong Kong people or non-local residents using HSBC branch services has increased significantly, and the number of new non-local resident customers recorded by HSBC Hong Kong in February has recovered to the monthly average in the first half of 2.
To better meet customer needs, HSBC said that its three branches will be the first to open 7 days a week on a trial basis, including: Ocean Centre, HSBC Jade and Premier Centre, Parklane Premier Centre and Kwun Tong Branch. The three branches will serve pre-booked customers during additional business hours on weekends from 3 March, specifically extending the service hours until 25pm on Saturdays and 5pm to 2pm on Sundays, allowing customers to make appointments for non-cash banking transactions such as account opening and initiating online or mobile banking transactions through the HSBC website.
Ms Pang Suk-ching, Head of Wealth Management and Consumer Banking Distribution at HSBC Hong Kong, said that since the full customs clearance between Hong Kong and the Mainland, the average number of non-local residents visiting branches in February has more than doubled compared with the average in January, mainly driven by mainland customers. Customer service centres received twice as many enquiries as in January, reflecting the strong demand for banking services. In addition, due to the peak weekend period for overseas and mainland visitors and the increased demand for banks, HSBC hopes to provide maximum convenience to all customers by opening for 2 days on a trial basis in three branches. "In addition to strengthening staff training, the Bank will also increase the size of its international banking and insurance-related teams serving Mainland customers by 1% through timely manpower deployment and recruitment."
Hong Kong insurance sales exploded and the number of large policy policies surged
According to data disclosed by the Immigration Department of the HKSAR Government, more than 2023,1 Mainland visitors visited Hong Kong from January to February 2, 62 times more than in the same period in 8.
The influx of mainland customers has not only brought demand from banks, but in terms of insurance business, every reporter has consulted different insurance agents and institutions, and relevant practitioners have said that sales have surged recently. A Prudential agent told reporters that his company's payment office queued up every day, and customers who had accumulated for 3 years were ready to apply for insurance. "Some customers have really waited a few years."
"This year's policy premiums are really higher than before (2019)." The salesperson said that several of his customers had increased their premiums more than expected. There are also customers who have insurance claims and directly add money. "The company's products have also been upgraded, and the discount has never been large, and the customer feels that there is room for additional amounts." She said.
On March 3, the Hong Kong Insurance Authority released provisional statistics for Hong Kong's insurance industry in 10, with total gross premiums reaching US$2022 billion during the period, down 5560.7% year-on-year. Total premium income from long-term active businesses decreased 7.4914% year-over-year to US$9.1 billion.
Premiums for new business from Mainland visitors rose by 21.200% year-on-year to US$3.2021 billion, accounting for 1.5% of total personal business due to a significant recovery due to individual policies and a low base in 95. About 41% of the policies purchased by this customer group are paid on a non-lump sum payment (i.e. not a lump sum), with whole life insurance, catastrophic illness insurance and medical insurance accounting for 32%, 19% and <>% respectively.
Hong Kong's local banking sector has little risk appetite for Credit Suisse
On March 3, the Hong Kong Monetary Authority issued an announcement saying: "Credit Suisse's business in Hong Kong includes a HKMA-regulated Credit Suisse Hong Kong branch and two SFC-regulated licensed corporations, and all companies will continue to operate today (March 20)." Customers can continue to deposit and withdraw deposits through the branch and trade Hong Kong stocks and derivatives using the trading services provided by Credit Suisse. ”
According to the Hong Kong Monetary Authority, Credit Suisse Bank Co., Ltd.'s Hong Kong branch has total assets of about HK$1000 billion, accounting for less than 0.5% of the total assets of Hong Kong's banking industry, and the local banking industry has little risk bearing on Credit Suisse. Hong Kong's banking system remains robust and its capital and liquidity position is abundant.
In addition, Credit Suisse's licensed corporations are not among the top 2023 active brokers in the equity and derivatives markets. As at the end of February 2, Credit Suisse was the 9th largest listed structured product issuer, accounting for approximately 4% of the total market capitalization of outstanding units. On the whole, they do not pose a significant risk to the Hong Kong market.
In addition, the reporter noted that the scale of Hong Kong's asset and wealth management business has increased significantly in recent years. In July last year, the Hong Kong Securities and Futures Commission released an investigation report saying that by the end of 7, the assets under management of Hong Kong's asset and wealth management business increased by 2021% year-on-year to nearly HK$2.35 trillion. Non-Hong Kong investors continue to be the main source of funds for asset and wealth management businesses, accounting for 55% of assets under management.