A Guide for Expats to Open a Bank Account in Mainland China

Nowadays, China introduced a visa-waiver scheme for citizens of several nations, including many major Western countries. Visitors can now enter China visa-free for short stays - typically up to 30 days - for holidays, business, family visits, or cultural exchanges. It is a brilliant opportunity to explore this fascinating country and experience an entirely different culture and culinary scene.

While foreign passport holders can easily set up an Alipay or WeChat Pay account and link an international Visa or Mastercard for daily spending, relying solely on foreign cards has its drawbacks. Some local merchants and online shopping platforms simply do not accept international bank cards. Furthermore, if you use an international Visa or Mastercard via Alipay or WeChat Pay, you will be charged with a 3% transaction fee on any payment exceeding 200 Chinese Yuan. If you are planning a longer stay, getting a local Chinese bank account sorted is highly recommended to avoid these inconveniences. It can help with local mobile payments, online shopping, receiving salary, paying rent, and dealing with day-to-day expenses without constantly running into foreign-card restrictions.

Key Differences in Chinese Banking

Before diving into the process, it helps to understand how Chinese bank accounts differ from those in the West:

• UnionPay is Standard: Instead of Visa or Mastercard, most Chinese banks issue UnionPay debit cards. In most occasions, you need to apply for a Visa or Mastercard seperately if you need one.
• Card Number is your Account Number: Unlike in most countries, where you have a separate account number and card number, your UnionPay card number is your account number. These numbers aren't strictly limited to 16 digits, and you simply give this long card number to anyone who needs to transfer you money or pay your salary.
• Combined Accounts: Chinese banks generally don't distinguish between current/checking accounts and savings accounts; most standard accounts combine the functions of both.

Understanding Account Classes

In Mainland China, personal bank accounts are categorized into different classes based on their functions and transaction limits. The two most common types are Class I ("一类账户" in Simplified Chinese) and Class II ("二类账户" in Simplified Chinese).

Class I Account

A Class I account is a fully functional and unrestricted bank account that allows users to perform all standard banking activities including large deposits, cash withdrawals, domestic and international transfers, and salary deposits. Opening one requires an in-person branch visit. For foreign nationals, opening a Class I account can be as challenging as it is for Chinese citizens, as banks typically require supporting documents such as local social insurance records, a recent payslip showing a stable income, and an employment letter. 

Class II Account

A Class II account is a more restricted account designed for everyday spending and basic financial needs. Some Class II accounts may be opened online and may not come with a physical debit card. While perfect for mobile payments, small transfers, and daily shopping, they come with strict daily transaction limits. Crucially, they cannot be used for foreign currency exchange or international transfers, which can be a bit of a headache for expats.

Step-by-Step Guide to Opening Your Account

Step 1: Register Your Chinese Phone Number First

Before you even think about heading to the bank, you must have a local Chinese mobile number (starting with country code +86), and it must be registered under your own real  name rather than a preferred name. Banks will verify your identity with the "Big Three" mobile carriers: China Mobile ("中国移动" in Simplified Chinese), China Unicom ("中国联通" in Simplified Chinese), or China Telecom ("中国电信" in Simplified Chinese). Another mobile carrier is called China Broadnet ("中国广电" in Simplified Chinese), but I would not recommend it to you since it does not support international roaming overseas.

For bank account opening, this is not just a casual contact number; it is part of the bank's identity verification and security process. You cannot just borrow a mate's phone number.

• Where to go: Skip the airport SIM card kiosks. Instead, visit an official, directly operated flagship store of one of these carriers. Smaller franchise shops may not familiar with how to process passport registrations, as locals use Chinese ID cards.
• Choosing a Plan: If you are only staying in China temporarily, ask for the most basic monthly plan. China Mobile and China Unicom offer plans for about 8 Chinese Yuan per month, whilst China Telecom has plans for 5 Chinese Yuan per month (the plan name is "无忧卡" in Simplified Chinese, but it may only available for Chinese ID Card or Foreign Permanent Resident ID Card holders).
• Important Tips: Ask the staff to manually activate international roaming via the carrier's mobile app or at a counter before you leave Mainland China, or you will lose your signal abroad. Always ask for a receipt or invoice to use as proof of your real-name registration at the bank.

Step 2: Obtain Your Proof of Address

Depending on the bank and the branch, staffs will occasionally require proof of your local residence. You can obtain this by:

• Registering at the local police station ("派出所" in Simplified Chinese) nearest to your residence to get a Temporary Residence Registration Form ("临时住宿登记表" in Simplified Chinese).
• Asking your hotel front desk for a Proof of Stay ("住宿证明" in Simplified Chinese).
• Providing a formal lease agreement signed with your landlord.

If you are staying in a hotel, the hotel usually handles accommodation registration. If you are staying in a private accommodation or another non-hotel residence, you normally need to register your accommodation with the local police station within 24 hours of arrival, using your passport, your visa (if applicable) and documents such as a lease agreement or landlord's property ownership certificate. This registration can be useful not only for immigration-related matters, but also as supporting evidence when dealing with banks or other official services.

Step 3: Choose a Bank and Visit a Branch

China's "Big Four" state-owned banks are Bank of China ("中国银行" in Simplified Chinese), ICBC ("中国工商银行" in Simplified Chinese), China Construction Bank ("中国建设银行" in Simplified Chinese), and Agricultural Bank of China ("中国农业银行" in Simplified Chinese). Alternatively, China Merchants Bank ("招商银行" in Simplified Chinese) is a highly regarded, market-oriented joint-stock bank. They own wide branch networks throughout the country. You generally do not need an appointment to open an account; you can simply walk in and take a queue number. Based on the experiences of many overseas Chinese, branches of China Construction Bank, ICBC, and China Merchants Bank tend to be the most experienced and proficient at handling applications from foreign passport holders.

What to expect at the branch:

1. Initial Screening: A staff member will first lead you to a counter rather than a self-service machine, and ask why you need the account. If they are happy with your reasoning, they will hand you some forms to fill out, including an application form and an anti-money laundering (AML) declaration.
2. Required Documents: You will need to hand over your original passport, your visa or residence permit (if applicable), your Chinese residential address (this is only for their records, not for sending post), and your Tax Identification Number from your home country (e.g., your National Insurance Number in the UK or PPSN in Ireland, as China complies with the OECD's Common Reporting Standard).
3. Verification: The staff will send a text message with a verification code to your Chinese mobile number and ask you a signature for their system.
4. Getting Your Card: If your application is successful, they won't make you wait for your card to arrive in the post. Instead, they will issue your physical debit card on the spot, help you set up a six-digit PIN, and guide you through registering for online banking.
   
5. Customization (Optional): Many Chinese banks let you customize your debit card's design for a small extra fee. In some cases, you can even upload a custom image (excluding political or offensive content) and have it printed directly on the card!

Opening a bank account in Mainland China can be straightforward if you have the right documents, but the experience depends heavily on the branch, the city, and the staff member dealing with your application. If one branch refuses your application or asks for documents you do not have, try walking into another branch of the same bank or a different major bank.

Before leaving, make sure you:

• confirm whether the account is Class I or Class II
• set up mobile banking
• link or prepare to link the card to Alipay and WeChat Pay
• activate the card at the counter or at an ATM
• check your daily transfer and payment limits
• ask whether foreign exchange or international transfer services are available

Once the account is open and your card is linked to Alipay or WeChat Pay, daily life in China becomes much easier. You can pay in shops and food courts, order food, shop online, receive transfers, and avoid many of the small but irritating problems that come with relying only on an international bank card.

Congratulations! Now you're sorted and ready to roll!