Hong Kong wholesale banking guide: features, services, pros, and cons

As an international financial centre, Hong Kong is home to many of the world’s top financial institutions. According to the Hong Kong Trade Development Council’s economic research, by the end of October 2024, there were 151 licensed banks in Hong Kong, including several wholesale banks dedicated to serving multinational corporations and institutional clients. These banks play a crucial role in driving Hong Kong’s economic development and supporting corporate globalisation.

This article compares the features, services, as well as pros and cons of Hong Kong’s main wholesale banks. It also introduces Airwallex’s global financial services to help businesses select the right international solutions.

What is wholesale banking?

Wholesale banks primarily serve large corporations, financial institutions, and government entities. They provide large-scale financing, risk management, and capital market services. They possess wide international networks and expert advisory teams. The three major wholesale banks in Hong Kong are HSBC, Bank of China (Hong Kong), and Standard Chartered. For example, HSBC actively participates in HKMA’s yuan trade finance liquidity arrangement, offering corporate clients across different industries with services such as letters of credit loans and structured trade finance. These can help establish Hong Kong as a global offshore yuan business hub.

Differences between wholesale and full-service banks

HSBC, Bank of China (Hong Kong), and Standard Chartered operate as both full-service and wholesale banks. Full-service banks in Hong Kong offer the broadest range of services, catering to both individual and corporate clients. They provide retail and commercial banking products such as savings accounts, credit cards, cheques, mortgages, investments, and insurance.

Comparing wholesale, commercial, and retail banks

Services offered by wholesale banks

• Trade finance: Wholesale banks design cross-border trade finance solutions such as letters of credit and advance payments to help companies manage international transaction cash flows and mitigate currency and geopolitical risks.

• Structured finance: They provide large-scale, long-term, and highly customised loans, often syndicated among multiple banks, to support infrastructure or renewable energy projects. Repayment structures are tailored to project progress and risk.

• Treasury management: Wholesale banks offer cash flow forecasting, multi-currency liquidity management, and hedging strategies to optimise capital use, ensure sufficient operating funds, and reduce financial risks.

• Capital raising: They assist companies in raising substantial funds through bond underwriting, syndicated loans, and equity offerings. For instance, HSBC and Bank of China (Hong Kong) acted as joint lead arrangers for the Hong Kong International Airport’s third runway project bond issuance.

• Risk management: They use advanced risk models such as Value at Risk (VaR) and hedging instruments to help companies manage exposure to currency, interest rate, and commodity price fluctuations. For example, wholesale banks may design hedging strategies such as forward contracts to lock in future rates so as to mitigate foreign exchange risk.

Advantages of wholesale banks

• Tailored financial solutions: Wholesale banks can customise complex financial packages for large enterprises, such as dedicated treasury management systems that can monitor cash flow in real-time and automate disbursements for high-value infrastructure projects.

• Global network: They are equipped with extensive international networks and market expertise that can support businesses expanding overseas and participating in large-scale infrastructure financing.

• Professional risk management: They provide professional hedging tools for foreign exchange, interest rate, and commodity price risks. These can help companies stabilise costs amid international market volatility.

Limitations of wholesale banks

• Limited accessibility: Wholesale banking services primarily target large corporations and institutions, making them less suitable to SMEs.

• Dependence on expert teams: Wholesale banking products are generally complex and require professional financial teams to utilise effectively. This poses a high-entry barrier for smaller businesses.

• Legacy systems: Despite industry efforts to adopt AI and other innovations, some large wholesale banks still rely on old systems. This delays information flow and slower digital transformation compared to newer financial institutions.

Consider Airwallex for your business’s global financial operations

As demand for flexible and efficient financial solutions grows, many businesses turn to digital financial platforms like Airwallex.

The Airwallex Business Account is an all-in-one platform for SMEs and enterprises seeking to grow their global footprint, with products that mirror some services offered by wholesale banks:

• Multi-currency accounts: With Airwallex, there’s no need to open individual bank accounts in each of the markets where you operate. You can instantly open a local currency account in more than 60 countries and start receiving funds in 20+ currencies.

• Foreign exchange risk management: Airwallex’s FX & Transfers minimise currency risk by locking in FX rates and tailoring settlement dates to suit your business requirements. This lets you manage short-term risks from cross-border payments as well as long-term risks from extended contracts and other financial commitments.

• Multi-entity management: Airwallex gives you a central platform to manage finances for your global entities. Instead of viewing each market’s local bank dashboard, you get a unified view of your global finances. You can also create global spend controls across your organisation and review and approve global expenses in one place.

On top of these, Airwallex has solutions to support your business’ day-to-day operations through:

• Fast, cost-effective international transfers: Pay zero or close to zero fees for international transfers to 120+ countries when you use local payment rails. 90% of transfers arrive on the same day.

• eCommerce payment gateway: With Airwallex, you can accept online payments from customers in 180+ countries and 160+ local payment methods, such as credit cards, FPS, Apple Pay, and Google Pay. Our payment gateway seamlessly integrates with leading eCommerce platforms like Shopify.

• Virtual and physical company cards: Enjoy zero foreign transaction fees with Airwallex Corporate Cards. You also get 1% unlimited cashback on all local and international spend, on all categories like SaaS subscriptions or travel expenses (T&Cs apply).

• Expense Management: Instantly view, monitor, and approve employee expenses through our built-in Expense Management platform.

• Accounting software integrations: If you use Xero, Netsuite, or Quickbooks, you can integrate these with Airwallex and automate your monthly reconciliation.

We help over 150,000 businesses around the world simplify their global financial operations. Open a free Airwallex Business Account account today.

Sources:

The information regarding licensed banks in Hong Kong was sourced in May 2025 from the following references. This content is for reference purposes only. Please visit the official websites of the research institutions and the banks for the latest details.

1. https://research.hktdc.com/en/article/MzEzOTI4MDY3

2. https://www.aastocks.com/tc/stocks/news/aafn-con/IC4447148/recommend-news/INFOCAST

3. https://www.thestandard.com.hk/market/article/226990/HKMA-to-start-yuan-trade-finance-liquidity-arrangement-at-the-end-of-this-month 

4. https://www.hongkong-fintech.hk/en/insights/news/news-2025/fact-sheet-hong-kong-fintech-landscape/ 

Disclaimer: This article was written in May 2025 based on independent online research. While we strive for accuracy, we have not personally tested all tools or service providers mentioned. The content is for educational purposes only, and readers should evaluate service providers independently. We update our articles every six months. For updates and inquiries, please get in touch with us at [email protected]