Chinese investors are rushing to Hong Kong to open bank accounts and buy investment products amid Beijing’s crackdown on cross-border capital flows, a move that has spooked shareholders of companies like HSBC. The tightening regulations target mainland firms allowing overseas investments, with Hong Kong authorities tightening account-opening rules and requiring stricter onboarding. This mirrors 2016’s clampdown on UnionPay cards for Hong Kong insurance purchases, which triggered panic among investors.

The fallout has hit global finance groups reliant on mainland clients, with AIA’s shares dropping 14 per cent in a month after booking $3.3bn in annualised Hong Kong premiums last year. Insurers and banks are scrambling to onboard clients, many of whom seek dollar-denominated life insurance policies offering higher returns than China’s low-yield savings. A 40-year-old ecommerce worker in Beijing, Tang Lu, rushed to open an HSBC account and register with a broker, highlighting the urgency as rules change daily.