Hong Kong, Mainland to Connect Payment Network

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Mar. 13 – Beginning March 16, Hong Kong and the rest of the mainland will link their foreign-currency payment and clearing systems to reduce cross-border payment risks and costs.

Mainland Chinese banks can now make cross-border payments and settlements in Hong Kong dollars, United States dollars, euros and pounds through the network.

More currencies will be accommodated depending on market demand. According to Shanghai Daily, the linkage will improve multi-currency payment efficiency while also facilitating capital turnover efficiency of participating banks.

Cross-border settlements will be carried out by the mainland banks; China Construction Bank, the Bank of China, the Industrial and Commercial Bank of China, and Shanghai Pudong Development Bank.

The Hong Kong agent banks for the mainland one will also be China Construction Bank, the Bank of China, the Industrial and Commercial Bank of China and Citibank.