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    HKMA Extends Guarantee Scheme for SME Financing

    October 18, 2021

    The Hong Kong Monetary Authority (HKMA) issued an update on the small and medium-size enterprise (SME) Financing Guarantee Scheme and announced names of 19 eligible banks in Hong Kong that can launch Cross-boundary Wealth Management Connect services. These banks, together with their respective Mainland partner banks whose eligibility for providing pilot Cross-boundary Wealth Management Connect services have been confirmed by the relevant Mainland regulatory authorities, can start providing Cross-boundary Wealth Management Connect services from October 19, 2021.

    As set out in the “Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area,” promulgated by HKMA on September 10, 2021, banks in Hong Kong that intend to embark on the Cross-boundary Wealth Management Connect activities should put in place systems, internal control measures, and complete relevant systems testing and submit a self-assessment to HKMA prior to the launch of such activities in accordance with the requirements in the Implementation Arrangements. The Cross-boundary Wealth Management Connect consists of the Southbound Scheme and the Northbound Scheme. The Southbound Scheme refers to eligible residents in the Mainland Greater Bay Area cities investing in wealth management products distributed by banks in Hong Kong and Macao via designated channels. The Northbound Scheme refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by the Mainland banks via designated channels. Banks intending to participate in the Northbound Scheme should notify and submit assessments of their business readiness to the relevant supervisory authorities in accordance with the principle of territorial administration. The list of eligible Hong Kong banks and their Mainland partner banks that can launch the Northbound Scheme services is as follows:

     

    Hong Kong Bank

    Mainland Partner Bank

    AGRICULTURAL BANK OF CHINA LIMITED


    BANK OF CHINA (HONG KONG) LIMITED

    BANK OF CHINA LIMITED

    BANK OF COMMUNICATIONS (HONG KONG) LIMITED

    BANK OF COMMUNICATIONS CO., LTD.

    CHINA CITIC BANK INTERNATIONAL LIMITED

    CHINA CITIC BANK CORPORATION LIMITED

    CHINA CONSTRUCTION BANK (ASIA) CORPORATION LIMITED

    CHINA CONSTRUCTION BANK CORPORATION

    CHINA MINSHENG BANKING CORP., LTD.

    CHINA MINSHENG BANKING CORP., LTD.

    CITIBANK (HONG KONG) LIMITED

    CHINA GUANGFA BANK CO., LTD.

    CMB WING LUNG BANK LIMITED

    CHINA MERCHANTS BANK CO., LTD.

    HANG SENG BANK, LIMITED

    HANG SENG BANK (CHINA) LIMITED

    HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (THE)

    HSBC BANK (CHINA) COMPANY LIMITED

    INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED

    INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

    INDUSTRIAL BANK CO., LTD.

    INDUSTRIAL BANK CO., LTD.

    NANYANG COMMERCIAL BANK, LIMITED

    NANYANG COMMERCIAL BANK (CHINA), LIMITED

    OCBC WING HANG BANK LIMITED

    PING AN BANK CO., LTD

    SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD.

    SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD.

    STANDARD CHARTERED BANK (HONG KONG) LIMITED

    STANDARD CHARTERED BANK (CHINA) LTD

     

    The list of eligible Hong Kong banks and their Mainland partner banks that can launch the Southbound Scheme services is as follows:

    Hong Kong Bank

    Mainland Partner Bank

    AGRICULTURAL BANK OF CHINA LIMITED

    AGRICULTURAL BANK OF CHINA LIMITED

    BANK OF CHINA (HONG KONG) LIMITED

    BANK OF CHINA LIMITED

    BANK OF COMMUNICATIONS (HONG KONG) LIMITED

    BANK OF COMMUNICATIONS CO., LTD.

    BANK OF EAST ASIA, LIMITED (THE)

    THE BANK OF EAST ASIA (CHINA) LIMITED

    CHINA CITIC BANK INTERNATIONAL LIMITED

    CHINA CITIC BANK CORPORATION LIMITED

    CHINA CONSTRUCTION BANK (ASIA) CORPORATION LIMITED

    CHINA CONSTRUCTION BANK CORPORATION

    CHINA MINSHENG BANKING CORP., LTD.

    CHINA MINSHENG BANKING CORP., LTD.

    CITIBANK (HONG KONG) LIMITED

    CHINA GUANGFA BANK CO., LTD.

    CMB WING LUNG BANK LIMITED

    CHINA MERCHANTS BANK CO., LTD.

    DAH SING BANK, LIMITED

    DAH SING BANK (CHINA) LIMITED

    DBS BANK (HONG KONG) LIMITED

    DBS BANK (CHINA) LIMITED

    POSTAL SAVINGS BANK OF CHINA CO., LTD

    HANG SENG BANK, LIMITED

    HANG SENG BANK (CHINA) LIMITED

    HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (THE)

    HSBC BANK (CHINA) COMPANY LIMITED

    INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED

    INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

    INDUSTRIAL BANK CO., LTD.

    INDUSTRIAL BANK CO., LTD.

    NANYANG COMMERCIAL BANK, LIMITED

    NANYANG COMMERCIAL BANK (CHINA), LIMITED

    OCBC WING HANG BANK LIMITED

    PING AN BANK CO., LTD

    SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD.

    SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD.

    STANDARD CHARTERED BANK (HONG KONG) LIMITED

    STANDARD CHARTERED BANK (CHINA) LTD

     

    In another announcement, HKMC Insurance Limited (HKMCI) noted that the extension of the maximum duration of principal moratorium under the SME Financing Guarantee Scheme to 24 months will take effect from October 06, 2021. This enhanced support measure is applicable to the 80% Guarantee Product, the 90% Guarantee Product, and the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme. Enterprises may approach relevant lending institutions to apply for principal moratorium or extend the principal moratorium period. The SME Financing Guarantee Scheme was launched on January 01, 2011 by The Hong Kong Mortgage Corporation Limited. The Scheme is aimed at helping local small and medium-size enterprises and non-listed enterprises to obtain financing from participating lenders for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment. Under the Scheme, the HKMCI may provide guarantee coverage of 50%, 60% or 70% to the credit facilities of eligible Enterprises approved by the lenders.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Wealth Management Connect, Northbound Scheme, Southbound Scheme, SME Financing, Credit Risk, Loan Guarantee Scheme, SFGS, HKMA

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