A new cross-boundary payment channel enabling real-time remittances between Hong Kong and mainland residents was officially launched yesterday. By 6 pm, the system had processed 25,900 transactions in both directions, according to the Hong Kong Monetary Authority (HKMA).
One mainland user told Hong Kong Wen Wei Po that transfers now arrive instantly, compared to the previous half-day wait. However, tests by reporters revealed that while northbound remittances (mainland to HK) work smoothly, southbound transfers require recipients to have a registered mobile number. The HKMA advised users to update their banking apps and ensure accurate recipient details for verification. The system connects Hong Kong's FPS with the mainland's IBPS, initially involving six banks from each side.
Remitters praise the convenient operation
The Bank of China Shenzhen Branch reported that Mr. Yip became one of the first users to complete a northbound remittance through the new cross-boundary payment channel early yesterday morning. Following simple instructions on the Bank of China Hong Kong's mobile banking app, he successfully transferred funds by simply entering the recipient's mainland mobile number. Meanwhile, Shenzhen resident Ms. Fang made history as the first mainland user to send money southbound, transferring RMB 10,000 to her daughter studying in Hong Kong through China Merchants Bank's app with just basic account details.
The system's convenience marks a significant improvement over previous methods. "I used to have to convert currencies and wait hours for transfers to process," Ms. Fang explained. "Now RMB transfers arrive instantly with minimal steps." The innovation has also benefited businesses, with Bank of China (Hong Kong) processing the first cross-boundary salary payments for a Hong Kong-based ship management company to pay mainland staff, as well as enabling a Hong Kong university to collect fees from mainland individuals.
Two-way remittances of 64.42 million in one day
Hong Kong Wen Wei Po reporters conducted real-time tests of the new cross-boundary payment system yesterday, revealing both its conveniences and current limitations. During afternoon trials, journalists completed northbound remittances of HK$100 through Hang Seng Bank, HSBC, and Bank of East Asia, with the banks' mobile interfaces displaying cross-boundary payment options. Users must first set a daily transfer limit of HK$10,000 before initiating transactions, which can then be processed fee-free using either the recipient's mobile number or bank account number. At yesterday's exchange rate, HK$110.35 was deducted to send RMB 100 to a mainland account.
However, attempts to make southbound transfers from mainland accounts at the Bank of China and the Industrial and Commercial Bank of China proved unsuccessful. The Bank of China app returned an error message stating "You are temporarily unable to use this function to remit," while ICBC indicated the service was not currently supported.
The Hong Kong Monetary Authority reported generally smooth operations on the system's first day, with approximately 6,900 northbound transactions averaging RMB 800 each and about 19,000 southbound transactions averaging RMB 3,100 each, totaling RMB 64.42 million in cross-boundary transfers by 6 pm. An HKMA spokesperson noted the authority will continue monitoring usage patterns to optimize the user experience and improve payment processes in collaboration with participating banks.
The spokesperson clarified important operational details: for northbound transfers from Hong Kong, users simply need the recipient's mainland account number or mobile number, while southbound transfers require mainland ID card holders to have updated banking apps. Additionally, transfers by account number require verification of the recipient's English name as registered with the receiving bank. These initial teething problems are expected to be resolved as the system matures and expands its capabilities.
Say goodbye to carrying money across the boundary
Many Hong Kong people plan to buy property and retire in the mainland, and need to remit money to mainland accounts. In the past, when they chose money changers to remit money, if they encountered problems with the money changers' funding channels, they could be implicated and suspected of money laundering at any time, and their remittances and accounts would be frozen. Some citizens who were affected said that they only brought cash to the north after the incident, but with the opening of the cross-boundary payment channel yesterday, remittances have become much more convenient. However, the daily limit of only HK$10,000 per person for northbound remittances is slightly insufficient. He hopes that the limit can be relaxed in the future to increase convenience.
Mr. Yip, a Hong Konger, bought a property in the mainland in his early years. In 2023, he planned to renovate the property on the mainland. He transferred HK$250,000 from a personal account in the mainland to his mainland account through a money changer in Hong Kong. However, the mainland law enforcement department found that the account used by the money changer was involved in illegal activities. As a result, Mr. Yip's receiving account was also frozen. He later asked the Legislative Council member for help before it was unblocked.
Hope the remittance limit will be relaxed in the future
Mr. Yip told the Hong Kong Wen Wei Po that he would go to the mainland every holiday and open an account in the mainland to facilitate the use of electronic payment. He no longer remits money through money changers. "The oldest way is to exchange RMB in Hong Kong, then carry the money through the border, and then deposit it into the bank account in the mainland, but there will be a lot of questions for a few thousand yuan, which is not a good experience."
For the opening of the cross-boundary payment channel, he believes that it is convenient for citizens, but the northbound remittance limit of HK$10,000 each time is not enough. "I understand that the mainland government is concerned about money laundering, so it will not be too relaxed for the time being, but Hong Kong people buying properties in the Greater Bay Area involves large-scale turnover, which is a very tricky problem." He hopes that the remittance limit will be relaxed in the future.
Ali, who has worked as a foreign worker caregiver in Hong Kong for more than ten years, was unable to return home due to the epidemic at the end of 2022. She remitted more than HK$60,000 to her family's account in the mainland through a money changer. Similarly, because the money changer was accused by the mainland police of using her account to launder money for criminal groups, her remittance was also frozen. Since then, she no longer remits money through money changers. After clearing customs, she often brings cash to Shenzhen to deposit into her family's account.
She believes that the cross-boundary payment system facilitates remittances between residents of the two places, but because she has never used online banking, she does not know how to go through the procedures. She is even more afraid that online remittances may cause "wrong amount" due to manual errors. She needs to go to the bank to inquire about how to open online banking before using it.
Scholars expect to gradually open up cross-boundary remittances for enterprises
Dun Zhigang, a researcher at Renmin University's Chongyang Institute for Financial Studies, explained toHong Kong Wen Wei Po that the new cross-boundary payment channel represents a significant upgrade from traditional international transfer methods. Unlike conventional systems relying on third-party intermediaries, this direct infrastructure link between mainland and Hong Kong payment networks enhances efficiency while strengthening financial sovereignty and risk management through its independently controlled clearing system.
Looking ahead, Dun anticipates the system will evolve beyond its current focus on individual remittances. He predicts expansion into a comprehensive ecosystem serving retail, corporate, and government needs, potentially incorporating functions like corporate cross-boundary transfers, supply chain finance, and e-commerce settlements to better support real economy demands.
(Source: Wen Wei Po; English Editor: Liu Yu)
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