China and Hong Kong Launch Real-Time Cross-Border Payment System

The People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA) have jointly initiated a real-time cross-border payment system. This project, named Payment Connect, links the India Bank Payment System (IBPS) and Fast Payment System (FPS) to facilitate daily remittances between residents in both regions.

The initiative aims to simplify low-value, real-time fund transfers for individuals living in China and Hong Kong. Implemented by the China National Clearing Centre (CNCC) and Hong Kong Interbank Clearing Limited (HKICL), it allows participating financial institutions to process cross-border transactions in Renminbi and Hong Kong dollars under current account provisions.

According to representatives from both authorities, Payment Connect is designed to enhance everyday financial interactions while ensuring compliance with anti-money laundering, counter-terrorist financing, and other regulatory standards. The system’s operations are supported by a Memorandum of Understanding between the PBoC and HKMA, which provides the necessary legal framework for linking the two payment systems.

CNCC and HKICL will continue to work with financial institutions to maintain system integrity and address any operational issues that may arise, ensuring data security and transaction reliability. The program aligns with broader economic integration objectives and supports policies aimed at facilitating financial cooperation between Hong Kong and mainland China.