The central bank and the Hong Kong Monetary Authority: Cross-border payment systems consolidate Hong Kong's status as an international financial center and an offshore RMB business hub

According to the Zhitong Finance APP, in order to deepen financial cooperation between the mainland and Hong Kong and meet the needs of residents in both regions for safe, efficient, and convenient cross-border remittances, the People's Bank of China and the Hong Kong Monetary Authority jointly promote and support the cooperation between the People's Bank of China Clearing Center and the Hong Kong Interbank Clearing Limited to establish interconnection of the rapid payment systems between the mainland and Hong Kong (hereinafter referred to as Cross-Border Payment Link). The announcement regarding this matter is as follows: The Cross-Border Payment Link is another important measure supported by the central government to facilitate the development of Hong Kong, improve people's livelihoods, and deepen financial cooperation between the mainland and Hong Kong. It is beneficial for enhancing the efficiency and service level of cross-border payments between the two regions, facilitating economic and trade activities and personnel exchanges, and supporting Hong Kong in enhancing its competitive advantage, consolidating its status as an international financial center and offshore RMB business hub. The original text is as follows: Joint Announcement by the People's Bank of China and the Hong Kong Monetary Authority In order to deepen financial cooperation between the mainland and Hong Kong and meet the needs of residents in both regions for safe, efficient, and convenient cross-border remittances, the People's Bank of China and the Hong Kong Monetary Authority jointly promote and support the cooperation between the People's Bank of China Clearing Center and the Hong Kong Interbank Clearing Limited to establish interconnection of the rapid payment systems between the mainland and Hong Kong (hereinafter referred to as Cross-Border Payment Link). The announcement regarding this matter is as follows: The Cross-Border Payment Link refers to the connection between the mainland online payment interbank clearing system and Hong Kong's rapid payment system "Faster Payment System," providing real-time cross-border payment services for residents of both regions while complying with relevant laws and regulations of both places. The Cross-Border Payment Link supports participating institutions of the rapid payment systems in both regions to provide convenient remittance services in RMB and HKD for residents, and supports participating institutions in both regions to provide rapid remittance services for business scenarios benefiting people's livelihoods, such as salary payments, tuition fees for studying abroad, and medical payments, based on the implementation of relevant policies. The Cross-Border Payment Link is another important measure supported by the central government to facilitate the development of Hong Kong, improve people's livelihoods, and deepen financial cooperation between the mainland and Hong Kong. It is beneficial for enhancing the efficiency and service level of cross-border payments between the two regions, facilitating economic and trade activities and personnel exchanges, and supporting Hong Kong in enhancing its competitive advantage, consolidating its status as an international financial center and offshore RMB business hub. The People's Bank of China and the Hong Kong Monetary Authority will establish an effective cooperation mechanism for the Cross-Border Payment Link under the framework of the "Memorandum of Understanding on the Interconnection of Cross-Border Payments between the Mainland and Hong Kong," ensuring that relevant services operate in an orderly manner and comply with the respective legal provisions and regulatory requirements of both regions. The People's Bank of China Clearing Center and the Hong Kong Interbank Clearing Limited will coordinate participating institutions to provide safe and efficient cross-border payment services for residents of both regions according to the principles of prudent and orderly operation and controllable risks, ensuring smooth system operation and business processing, and actively coordinating to resolve related issues. Participating institutions in the Cross-Border Payment Link must strictly comply with laws and regulations related to anti-money laundering, anti-terrorist financing, non-proliferation financing, and cross-border fund settlement. The Cross-Border Payment Link will be launched on June 22, 2025. This announcement is hereby made. This article is compiled from the "People's Bank of China" official account, edited by Zhitong Finance: Li Fo