HSBC, StanChart Shares Slide as New Rules Could Restrict Chinese Funds in Hong Kong Accounts

By Joe Stonor

Shares in London-listed financial groups with a large presence in Asia fell on fears that new rules would curtail mainland Chinese investors' use of Hong Kong bank accounts.

Insurer Prudential slid 6.5% to an eight-month low of 9.87 pounds. Shares in HSBC--the U.K.'s most valuable bank--fell 3.9%, while Standard Chartered slid 5.6%.

The moves follow a 6.75% fall for insurance giant AIA Group in Hong Kong trade.

On May 22, Hong Kong's Securities and Futures Commission outlined a suite of additional rules, including a requirement that prospective customers' funds originated outside of mainland China.

According to a report published in the South China Morning Post, the new rules are starting to bite on financial institutions in the region. Investors are concerned the new rules will impact mainland Chinese investors' use of Hong Kong bank accounts.

An HSBC branch in Shanghai said that all funds deposited into investment accounts must comply with the Hong Kong authority's new rules, according to the report. Moreover, Bank of East Asia's Shanghai branch suspended opening accounts in Hong Kong in response to the rule change, the report said.

Insurers are impacted by the rule change as investors from mainland China are big spenders on Hong Kong insurance products.

Shares in Prudential have fallen close to 14% since the last trading day before the SFC's announcement of the new requirements.

The rule changes are part of a broader Chinese effort to tighten scrutiny over capital outflows. Under separate rules announced last week, the Chinese government will have authority to conduct reviews of overseas investments that could affect national security.

HSBC, Standard Chartered, Prudential and AIA didn't immediately respond to a request for comment.

Though the new rules will likely create more friction for financial institutions in the region, they aren't aimed at causing significant disruption to the system, Jefferies analyst Philip Kett wrote in a note to clients.

"There will be almost no impact on the life insurance industry," Kett wrote.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

June 04, 2026 09:10 ET (13:10 GMT)