CCTV News: Recently, the State Administration for Financial Regulation issued the "Notice on Matters Related to the Start of Bank Card Business of Mainland Branches of Hong Kong and Macao Banks" (hereinafter referred to as the "Notice"), and the heads of relevant departments and bureaus answered reporters' questions on related questions.

1. What is the background and significance of the formulation of the "Notice"?

Agreement II on the "Agreement II on the Service Trade Agreement on the Arrangement of the Mainland and Hong Kong on Establishing Closer Economic and Trade Relations" and "Agreement II on the "Agreement II on the Service Trade Agreement on the Arrangement of the Mainland and Macao on Establishing Closer Economic and Trade Relations" approved by the State Council will be officially implemented on March 1, 2025, which will lift the restrictions on the mainland branches of Hong Kong and Macao Bank not allowed to open bank card business. In order to implement it well, the State Administration for Financial Regulation has drafted and formed the "Notice" in light of the needs of economic and social development and industry demands, which clarified the matters related to the establishment of bank card business of mainland branches of Hong Kong and Macao Bank, aiming to further promote high-level opening up, increase financial support for the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, deepen financial cooperation between the mainland and Hong Kong and Macao, and improve the quality and efficiency of financial services of mainland branches of Hong Kong and Macao.

2. What is the basis for the superior law formulated by the "Notice"?

The Regulations on the Administration of Foreign Banks of the People's Republic of China (hereinafter referred to as the Regulations) reserves space for the implementation of the agreement. Article 72 of the Regulations stipulates that "bank institutions established by financial institutions in the Mainland (Mainland) in the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan shall apply this Regulation in accordance with this Regulation. If otherwise provided by the State Council, the provisions shall be in accordance with such provisions." The Agreement II of the "Agreement II of the Service Trade Agreement on the Arrangement of the "Agreement II of the Service Trade Agreement on the Arrangement of the Mainland and Macao on the Establishment of Closer Economic and Trade Relations" approved by the State Council cancels the restrictions on the prohibition of Hong Kong and Macao on the Establishment of Closer Economic and Trade Relations of the Bank of Hong Kong and Macao on the Establishment of Closer Economic and Trade Relations" and applies Article 72 of the Regulations.

3. What are the specific scopes of bank card business that are applicable to the "Notice" and allow the establishment of bank card business?

The Notice applies to branches established in the Mainland by commercial banks in the Hong Kong Special Administrative Region and the Macao Special Administrative Region in accordance with relevant laws and regulations of the Mainland. The branch applies the provisions of the Regulations on foreign bank branches.

The "Notice" allows mainland branches of Hong Kong and Macao Bank to open bank card business within the scope of existing customers, including: opening foreign currency and RMB bank card business for citizens outside China; opening foreign currency and RMB bank card business for citizens inside China; opening foreign currency and RMB bank card business for corporate customers inside China (including enterprises, institutions, government agencies, etc.).

4. How to handle the bank card business in Hong Kong and Macao if it set up multiple branches in the mainland?

Article 63 of the "Implementation Rules for the Administration of Foreign Banks of the People's Republic of China" stipulates that "if two or more foreign bank branches are established in China, one of the branches shall be designated by the foreign bank head office or authorized regional headquarters as the management bank, and shall be responsible for the management of business in China and the reporting of consolidated financial information and comprehensive information of all branches in China."

In order to strengthen the management bank's performance of its overall management duties, the "Notice" stipulates that if a Hong Kong and Macao banks set up multiple branches in the mainland, if they start bank card business, in principle, they shall be first opened by the management bank and clarify the specific procedures. At the same time, the "Notice" also considers the special circumstances in which the management bank has no plans to start bank card business but other branches have plans to start bank card business, and clarifies the specific procedures.

5. What are the provisions of the "Notice" for preventing and resolving risks?

In order to strengthen the main responsibility of banks, the "Notice" requires that mainland branches of Hong Kong and Macao banks should effectively protect the legitimate rights and interests of consumers, strengthen system construction, compliance management and risk control, strengthen network security, data security and business continuity management, effectively protect personal information, strictly abide by relevant laws, regulations and regulatory regulations, and require the management bank to coordinate the management of mainland bank card business.

At the same time, the "Notice" requires all local regulatory bureaus to strengthen supervision and management of bank card business in mainland branches of Hong Kong and Macao banks, urge institutions to carry out bank card business in accordance with the law, effectively prevent risks, and protect consumers' legitimate rights and interests.