Shares of HSBC (HSBC), Standard Chartered and Prudential fell in London on Thursday after a report said mainland Chinese residents are facing greater constraints on opening offshore investment accounts through major Hong Kong banks.
The South China Morning Post reported that the Shanghai branch of Bank of East Asia suspended its witness service for opening Hong Kong investment accounts, amid tighter oversight of capital outflows by Chinese authorities.
The report also said the Hong Kong Monetary Authority instructed banks to require customers to declare that funds used in investment accounts originated outside mainland China.
While HSBC staff in Shanghai told the news outlet that witness services remain available, they cautioned that funds deposited into investment accounts must comply with Hong Kong regulatory requirements.
HSBC, Standard Chartered and Prudential did not immediately respond to' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price: $91.50, Change: $-2.14, Percent Change: -2.29%