London Daily

Focus on the big picture.
Tuesday, Jul 01, 2025

HSBC, Standard Chartered, and online lenders Airstar, WeLab race to offer high interest rates, cash prizes to capture new customers claiming their HK$10,000 government payout

HSBC, Standard Chartered, and online lenders Airstar, WeLab race to offer high interest rates, cash prizes to capture new customers claiming their HK$10,000 government payout

HSBC, the city’s biggest lender, is offering a 10 per cent saving rate for new customers who open an account to receive their handout. Many lenders offer cash draw from HK$20 to HK$100,000 to compete for 7 million people to register the government payout with them

Hong Kong’s banks, from new digital lenders to traditional powerhouses of the sector, are in a price war to lure 7 million Hong Kong permanent residents into using their platform to get their HK$10,000 (US$1,290) government cash handout.

Newly-launched virtual lenders like Airstar and the three note-issuing banks, HSBC, Standard Chartered, and Bank of China Hong Kong, have entered the fray, offering high interest rates, lucky draw prizes and other incentives.

The HK$71 billion of payouts announced by Financial Secretary Paul Chan Mo-po in February’s budget is aimed at helping people cope with the economic slump caused by the Covid-19 pandemic and a year of anti-government protests. Bankers, however, are taking it as an opportunity to compete for new customers.



People can register through one of 21 banks from June 21 until the end of this year to get their hands on the HK$10,000, with the money due to be paid into their registered bank account from July 8.

HSBC, the largest lender in the city, is offering a 10 per cent interest rate on up to HK$50,000 of savings for two months for new customers who open an account via its mobile phone app, until the end of July. It will also offer a lucky draw for customers who register for the government payout via its platform, but details will only be given next week, according to a spokesman for HSBC.

BOCHK is offering a 4.3 per cent interest rate for three-month time deposits of up to HK$100,000 for new customers who use mobile banking to open a new account.

Normal saving deposit rates in Hong Kong are close to zero, while time deposits are only between 1 and 2 per cent.

Lucky draws for cash prizes have emerged as a theme for the banks competing for customers to sign up for the government payout. Standard Chartered is offering an extra HK$10,000 cash for each of 24 winners, Hang Seng Bank is offering 9,000 people the chance to win HK$20 each, while five will get HK$10,000. Bank of East Asia is offering 31 customers prizes between HK$1,000 and HK$10,000.

Citibank is enticing customers with HK$68 cash for anyone registering with it for the government payout. It will also give HK$100,000 to one customer in a lucky draw, the highest among all banks.

Brand new players have also joined the game. Airstar, a joint venture virtual bank led by mobile phone maker Xiaomi, started full operations on Thursday. It is offering a 3.6 per cent savings rate on up to HK$20,000 for new customers.

WeLab Group, an online lender, last month offered a HK$10,000 loan to borrowers, free of charge provided they agreed to repay it once they receive the government payout. Co-founder and chief executive Simon Loong said about 70 per cent of its 4,000 applicants are new customers.

“This is a good opportunity for Hongkongers to try the new online banking services,” Loong said.

New players coming to the market with compelling saving rates will follow this with attractive loan offers, James Lloyd, a partner at advisory firm EY, predicts.

“As incumbent players respond in kind, we expect to see some capital transfers and net interest margin compression. Ultimately, the challenge for both new and existing players will be how to generate account loyalty without engaging in a never-ending price war,” Lloyd said.

Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×