HONG KONG – HSBC Holdings and AIA Group shares fell alongside other Asia-exposed financial stocks after a media report said that some banks have suspended opening Hong Kong bank accounts for clients in mainland China that could be used for overseas investments. Bank of East Asia’s Shanghai branch has suspended opening such accounts, the South China Morning Post reported on June 3. HSBC has warned that all funds deposited into investment accounts must comply with Hong Kong’s regulatory requirements, according to the report.As well as lenders offering cross-border bank accounts, news of the clampdown also hit insurance companies like AIA and Prudential, which rely heavily on mainland Chinese visitors to Hong Kong to buy their insurance products.HSBC fell as much as 6 per cent in London on June 4, while shares of AIA insurance company dropped 6.8 per cent in its worst day since March. Standard Chartered was down 5.5 per cent at 1.23pm in London with Prudential down 6.6 per cent.Hong Kong banks are ramping up scrutiny of mainland Chinese clients opening savings and investment accounts, part of a broader push to stem capital flight after Beijing launched an unprecedented crackdown on illegal cross-border trading. In May, the China Securities Regulatory Commission slapped more than US$330 million (S$424 million) in combined fines on three online brokers for operating on the mainland without a license.“While changes to the regulatory process may introduce marginally more friction to the sales process of financial products, it is our view that these regulations are aimed at better enforcing existing rules rather than disrupting the system,” analysts at Jefferies said in a research note. “It seems highly unlikely to us that there will be any discernable impact on the insurers.” BLOOMBERG