On June 22, under the joint promotion of the People's Bank of China and the Hong Kong Financial Administration, the interconnection cooperation between the mainland and Hong Kong's rapid payment system (hereinafter referred to as the "Cross-border Payment Connect") was officially launched, marking that the rapid payment system between the mainland and Hong Kong has been interconnected, and residents of the two places will be able to handle cross-border remittances in real time in the future.
According to a joint announcement issued by the People's Bank of China and the Hong Kong Monetary Authority on the 20th, the cross-border payment port refers to the "fast forwarding" connection with the Hong Kong fast payment system through the mainland's online payment cross-bank clearing system, and provides real-time cross-border payment services to residents of the two places under the premise of complying with relevant laws and regulations of the two places.
It is understood that the first batch of mainland institutions participating in cross-border payments include ICBC, Agricultural Bank of China, Bank of China, CCB, Bank of Communications, and China Merchants Bank; Hong Kong institutions include BOC Hong Kong, Bank of East Asia, CCB Asia, Hang Seng Bank, HSBC Bank, and ICBC Asia, and will gradually expand the scope of participation in the future.
"In the past, when I transferred money to my daughter who was studying in Hong Kong, I had to exchange RMB into Hong Kong dollars first, and after remitting it, I had to wait at least half a day before I could get the account. Now, using the Cross-border Payment Pass, you can not only use RMB to remit money directly, but also realize real-time funds to get the account, which is very convenient to operate." Ms. Fang, who tasted the "first taste" of this innovative business, praised. It is reported that after Ms. Fang learned that after the cross-border payment port was launched, she immediately remitted 10,000 yuan to her daughter who was studying in Hong Kong through the China Merchants Bank App. She simply entered her daughter's account and name on the China Merchants Bank App, and easily completed the cross-border RMB remittance from Shenzhen to Hong Kong.
Mr. Ye, a Hong Kong citizen, also praised the Cross-border Payment Pass. He said: "In the past, when I came to Shenzhen for travel, I always had to transfer the money into the mainland account in advance, so that it would be convenient to use it in Shenzhen after arriving. Now, I can directly transfer my money in Hong Kong to the mainland account through the Bank of China Hong Kong Mobile Banking. I also support the receipt of the payment by filling in the mainland mobile number. It is simple to operate and instantly arrive, and there is no fee. It is both convenient and affordable!"
The head of relevant departments of the People's Bank of China said that compared with traditional cross-border remittances, the cross-border payment connection with Hong Kong effectively shortens the cross-border remittance link, improves the efficiency of cross-border remittances, and technically supports participating institutions to provide users with better cross-border remittance services: First, support users to initiate cross-border remittances online through mobile banking, online banking and other channels of participating institutions, relying on mobile phone numbers, bank accounts, etc.; Second, support convenient remittances within a certain amount under the current account to arrive in real time; Third, the relevant payment infrastructure is directly connected to reduce intermediate links and reduce cross-border remittance costs.
According to reports, the cross-border payment service is mainly used in three aspects of cross-border remittance business scenarios, including the "south-facilitated remittance business" remitted by domestic residents to bank accounts in Hong Kong. You can choose RMB remittance, RMB or Hong Kong dollars to be transferred; the "north-facilitated remittance business" remitted by Hong Kong residents to bank accounts in mainland China. You can choose Hong Kong dollars or RMB to be initiated and RMB to be transferred; and the "two-way cross-border RMB payment business" between individuals and institutions, such as study abroad payment, public utility payment, medical treatment, salary and subsidy distribution, etc. You can choose bilateral local currency or bilateral RMB remittance.
"In the past, cross-border remittances mainly relied on the SWIFT system, and the user experience needs to be improved. Cross-border payments use direct infrastructure interconnection to achieve full-link digitalization and scenario-based coverage, which can solve traditional service pain points such as long links, high costs, and cumbersome processes." Zeng Shengjun, senior researcher at the Greater Bay Area Finance Research Institute of Bank of China Shenzhen Branch, analyzed that cross-border payments are one of the important measures to promote financial opening. On the one hand, by supporting real-time exchange and clearing of RMB and Hong Kong dollars, the use scenarios of RMB in cross-border trade will be further expanded. On the other hand, it can consolidate Hong Kong's position as an international financial center and strengthen Hong Kong's function as an offshore RMB hub.
A relevant person in charge of the Shenzhen Branch of the People's Bank of China said that as the location of the conversion center of the cross-border payments, Shenzhen has played an important role in financial infrastructure. The just-launched cross-border payments service provides safer, efficient and convenient payment services for Shenzhen-Hong Kong economic and trade activities and personnel exchanges, helping to accelerate the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area, and will further support the construction of Hong Kong's International Financial Center.
The head of relevant departments of the People's Bank of China also emphasized that mainland institutions participating in the handling of cross-border payments related businesses should comply with the relevant business management regulations for cross-border fund settlement, implement the compliance requirements for anti-money laundering, anti-terrorist financing and non-proliferation financing in accordance with the law, establish and improve the risk monitoring mechanism for cross-border payments remittance business, improve risk prevention capabilities, strengthen monitoring of suspicious transactions, and ensure the smooth and orderly development of business.
Zeng Shengjun predicts that at this stage, the cross-border payments are mainly aimed at the individual-to-individual (P2P) level, and will consider expanding to the application scenarios of individual-to-enterprise (P2B), enterprise-to-individual (B2P), and government-to-enterprise (G2B) level in the future. In addition to Hong Kong and the Mainland, relevant cross-border payment models are expected to be expanded between the Mainland and other countries and regions, thereby continuously expanding the coverage of payment scenarios.
