Today's weather (Shenzhen)
High = 26 Low = 15 Sunny
One country and two systems is of great benefit to those who can use this dichotomy to their advantage. On one side of the coin, you have the fact that the mainland and Hong Kong are two fundamentally different social systems. In general, if you're having trouble and inconvenience on the mainland with banking, business, visas, or a host of other things, then Hong Kong is your perfect solution. On the other side of the coin, you have the fact that Hong Kong and the mainland are one China. This makes it very easy to cross the border back and forth, and certainly to apply for Chinese visas within Hong Kong at the mainland "consulate"
In this sense, I fully support the one China principle and the 'one country two systems' model because I've benefited from it numerous times, not to mention the most recent successful HK bank trip.
As described in the last post it essentially means making money in the mainland and walking across the border with cash in hand in order to bank it with a Hong Kong based multi currency account.
That type of account is precisely what I opened on Friday, not surprisingly, at the world's local bank which is HSBC.
Hong Kong wasn't the first idea, but I was more or less forced to do this out of frustration and desperation with 8 earlier failed attempts to set up a multi-currency account on the mainland with HSBC here in Shanghai. So there was no choice but to take a day off work, fly down to Shenzhen on Thursday night, and carry piles of cash across the border just like the locals. Then on Friday I opened an account at the HSBC in Hong Kong and got a totally different experience, and a lot more positive to boot.
I don't want to make a habit of carrying heaps of cash across the border. To avoid the risk of getting caught at the border and having the cash confiscated, then the plan MUST involve flying to Shenzhen and walking across at Luohu or Lok Ma Chau. This in itself involves other risks, given that the Shenzhen train station (Luohu) in particular has always had a terrible reputation for crime and pickpockets.
This is not exactly the kind of place you want to be walking around with cash, but everybody does it, and everybody knows about it. So you're essentially a walking target. I took a taxi to Luohu right at the gate, jumped out, and literally made haste as I had pre-memorized every step to get to the border queue with the cash securely tucked away. The problem with newbies doing this border run is how incredibly easy to get lost in the maze with poor signage and throngs of crowds -- even during off-peak times. If that's the case, you stand there looking lost for one second, and your cash is gone.
As it turns out there won't be much need to do a cross-border cashwalk again because all the banking can now be done online, since the account is set up. This includes remittances to and from the account. RMB transactions are indeed limited, but they may not be necessary for what I'd like to do.
There is also the option of 3rd party banking but I'm rather clueless on that and will ask finance contacts to help. As it stands, I've learned more about banking and finance in the last several months than my entire life.
Some frequently asked questions about HK multi currency banking:
1. Is it possible to open a Hong Kong account without actually going there? How I wish. I tried, and it's incredibly troublesome to do this from the mainland, so you're really better off just making the trip.
2. Do you need to be a HK resident to open the account? No but it depends on which bank, and which currencies you want. HSBC is the best choice as they only ask for a proof of address (can be in any country) and a passport. Then the mechanics of the account are quickly set up, and they issue you a debit card and PIN it on the spot. It is not possible to enjoy RMB services, RMB remittances, or RMB deposits unless you are a Hong Kong ID card holder. Even if you do have the ID card there are limits in place on how much RMB you can transfer daily.
3. Which banks offer the multi currency accounts? The *norm* is to have multi-currency accounts in Hong Kong. HSBC is not the only player in this game, despite what their PR campaign may lead you to believe. Other banks such as DBS, Citibank, and Standard Chartered can also do this, but there are more limitations. For example, not all can offer Thai Baht, which for me is a key currency I want to deal in. Some of the banks won't open accounts to non-residents of Hong Kong
4. Is there a minimum balance required? Of course. It depends on which bank. Research has shown DBS to insist on HKD $30,000 or else a $50 below balance fee each month. Citibank is comparable. HSBC offers the Advance Account requiring HKD $200,000 minimum total relationship balance or else HKD $120 per month below balance fee. There is the Premier Account which requires a whopping million HK dollars.
Intensive online research led to believe that the HSBC Advance Account was the lowest balance requirement option, and this was discouraging because I don't have that kind of money kicking around nor do I want 120 Hong Kong dollars draining out each month.
However, the person I spoke with was extremely helpful and introduced me to the SmartVantage account, which I had never heard of. This is the best deal out there because you only need HKD $10,000 minimum balance or else a HKD $60 monthly maintenance fee. The account manager was courteous enough to "downsell" me this option, which would have been unheard of on the mainland. You can still enjoy all the benefits of the Advance Account including online banking and a security key password that is mailed to your address. Just bring proof of it, such as a utility bill, and you don't need to make another trip to Hong Kong.
In general, it was the most positive bank experience I've had in years. The accont manager was great and, shockingly, I was treated with customer service. Everything was smooth and the whole thing was done in 30 minutes, including all the paperwork, PIN card, and the rest getting sent off in the mail to my Shanghai address.
After a zillion of my stupid questions, she jokingly told me, "Don't think so complicated, this is Hong Kong, it is convenient, we just do things. If you've lived on the mainland for so long, then this must be beyond your imagination."
You got it. I tried to tell her that what we accomplished today would have been impossible on the mainland. Then she joked back and said, "Well then I must help you if you came all the way from the mainland to open a bank account."
Then she pointed me in the direction of the Apple Store where I made sure to purchase the latest Ipad which is just released today.
No comments:
Post a Comment