Monday 31 July 2023


 The largest local bank in Hong Kong, Hang Seng Bank, has shared a predicted rise in interest rates which could precipitate a slowdown in demand for bank loans compared to mainland and neighboring regions.
The bank noted that high-interest rates have, in the past, shifted the management of trade financing to neighboring regions, with some companies even relocating to Southeast Asia due to pressures on the mainland’s manufacturing industry.
To address the snowballing concerns, the bank has embraced the cryptocurrencies market and has also established guidelines for crypto asset businesses to adhere to while conducting operations.
The bank has announced that these crypto asset businesses can open standard banking accounts after obtaining an Approval-in-Principle (AIP) license from the Securities Regulatory Commission.
Roundtable meetings between the China Securities Regulatory Commission and the Hong Kong Monetary Authority have been held to address the obstacles faced by virtual asset businesses.
Lin Yansheng, Director of Commercial Banking at Hang Seng Bank, emphasized the Bank’s determination to adhering to regulator instructions and supporting these companies.
He added that only two crypto asset trading firms have obtained clearance so far.

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