Summary of Key Points
Recently, mainland investors have been looking for cross-border investment channels outside of Hong Kong (such as Singapore or U.S. brokerage firms). However, the reality is that opening an account in Singapore is more difficult than expected due to strict compliance reviews and hidden deposit requirements. Additionally, Asian branches of U.S. brokerage firms do not accept mainland customers. Some investors who previously moved to Singapore have returned to Hong Kong due to poor service quality. Overall, the compliance requirements for cross-border investments are becoming increasingly stringent, leaving few low-barrier alternatives.
1. Don’t Believe in “Zero-Barrier” Promises! Opening an Account in Singapore is More Difficult than in Hong Kong
Many intermediaries claim that it’s possible to open an account remotely or with no barriers in Singapore, but the opposite is true:
- Strict requirements for private banking accounts: Following the 2023 Fujian money laundering case (where mainland individuals used Singaporean private banking accounts to launder funds), Singapore has tightened its reviews for mainland customers, including verifying the source of funds, tax status, and assets. Without a long-term residency permit or local address in Singapore, it’s practically impossible to open a legitimate investment account.
- Hidden barriers with regular accounts: While some promotions claim no deposit requirements or management fees, there is an implicit requirement to deposit a certain amount within 1–3 months; otherwise, the account may be closed (banks have already deleted several remotely opened accounts). Moreover, Singaporean banks and brokerage firms use separate review processes, so passing the bank’s approval does not guarantee acceptance by the brokerage firm.
- Many marketing gimmicks: Services such as “travel-based account opening” or “remote witnessing” are mostly for show; ordinary investors find it difficult to obtain substantial services, as Singaporean institutions primarily target high-net-worth individuals.
2. Why Are Customers Moving Back to Hong Kong? Poor Service is the Main Reason
In the past two years, many mainland investors have transferred their accounts from Singapore back to Hong Kong due to subpar service:
- Hong Kong’s financial professionals understand mainland customers better: As a cross-border wealth center in the Asia-Pacific region, Hong Kong has gathered many professionals who speak both Chinese and English and are familiar with mainland business practices and culture, making communication smoother and services more professional.
- Singaporean staff are not well-versed in mainland customer needs: Singaporean private banking staff mainly serve Southeast Asian and European/American clients; they lack training in understanding the needs of mainland investors, leading to mismatched services.
3. Can You Open an Account with a U.S. Brokerage Firm? Asian Branches Do Not Accept Mainland Customers
Some investors try to open accounts through U.S. brokerage firms’ Asian branches, but this is not feasible:
- Eagle Investment: Its Hong Kong, Japan, and India subsidiaries only serve local customers. Mainland individuals must open an account with the U.S. headquarters, providing proof of long-term overseas residence or employment, and account activities are subject to Chinese regulations.
- Charles Schwab: Its website does not list mainland China as a valid opening location, and its information is primarily for Hong Kong residents.
In summary, U.S. brokerage firms’ Asian branches do not welcome mainland customers, and opening an account requires meeting overseas residence criteria, which is not easy.
4. Increasing Compliance Requirements for Cross-Border Account Opening
Both Singapore and the U.S. are tightening the compliance requirements for cross-border account opening:
- Singapore’s CRS2.0: In 2027, Singapore will implement CRS2.0, which will result in more detailed checks on account information and fund sources. Non-U.S. residents trading U.S. stocks will need to fill out the W-8BEN form; incorrect or missing forms will result in a 30% withholding of dividends.
- U.S. brokerage firms: They strictly comply with local regulations and do not offer shortcuts for mainland investors.
This indicates that finding low-barrier, informal channels for cross-border investment is becoming increasingly difficult; compliance is the inevitable path forward.
Conclusion: For mainland investors seeking cross-border investment options outside of Hong Kong, neither Singapore nor the U.S. presents an easy route. Hong Kong’s services are more mature and reliable. In the future, compliance requirements for cross-border investments will only become stricter. Investors should avoid “zero-barrier” claims and use legitimate channels.