Mainland China-HK cross-boundary payment linkage to be launched in June

According to the Sing Tao Daily, sources indicate that the cross-boundary payment systems between Mainland China and Hong Kong are tentatively scheduled to be interconnected by June next year.

In his policy address last week, Chief Executive John Lee mentioned that the Hong Kong Monetary Authority and the People's Bank of China are working to link Hong Kong's Faster Payment System (FPS) with mainland China's Interbank Payment System (IBPS). This initiative aims to facilitate real-time, small-value cross-boundary payments for residents of both regions.

The initial phase is expected to focus solely on cross-boundary transfers and remittances, without involving retail payment transactions. Further details, including the scope of application and transaction limits, are still under discussion between the two monetary authorities. They hope to finalize the specifics by the end of this year.

Several Hong Kong banks are set to trial this service in April, with a full launch planned for June, when other banks are anticipated to join. Once operational, Hong Kong residents will be able to instantly transfer RMB to the mainland using FPS by entering a mobile phone or bank account number. They will have the option to transfer funds directly from their Hong Kong bank accounts in RMB or convert Hong Kong dollars to RMB through the banks for the transactions.

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