A view of Hong Kong Photo: VCG
The Payment Connect was officially launched between the Chinese mainland and Hong Kong on Sunday. It marks the interconnection of the faster payment system between the Chinese mainland and the Hong Kong Special Administrative Region (SAR), enabling residents of both areas to conduct real-time cross-boundary remittances.
The first real-time cross-boundary transaction was done in Shenzhen, South China’s Guangdong Province, on Sunday, according to the Shenzhen branch of the People’s Bank of China (PBC), the central bank.
An official from the PBC Shenzhen Branch said that the newly launched Payment Connect system provides safer, more efficient and also more convenient payment service for conducting economic and trade activities, as well as personnel exchanges between Shenzhen and Hong Kong.
“It will help accelerate the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area and further support the construction of Hong Kong as an international financial center,” noted the official.
Analysts said that the Payment Connect represents a significant innovation in the interconnection of financial infrastructure between the Chinese mainland and Hong Kong. They said that the launch of the Payment Connect enhances the usability of the yuan in cross-boundary retail scenarios.
The linkage of the faster payment system between the mainland and Hong Kong was put forward by the PBC and the Hong Kong Monetary Authority (HKMA), in order to deepen financial cooperation between the two areas, and to meet the demand of residents in both places for secure, efficient and convenient cross-boundary remittance service, according to a statement by the PBC on Friday.
Payment Connect refers to the linkage between the Mainland’s Internet Banking Payment System (IBPS) and Hong Kong’s Faster Payment System (FPS). It supports real-time cross-boundary payment service for residents in both places, in compliance with relevant laws and regulations of the two places, read the PBC statement.
HKMA also said in a statement on Friday that by simply inputting the recipient’s mobile number or account number, residents in both places can make instant small-value cross-boundary remittances using the Payment Connect.
According to PBC, the Payment Connect represents another key measure of the central government in supporting the development of Hong Kong SAR. It brings convenience to people’s daily lives, deepens financial cooperation between the mainland and Hong Kong, and enhances the efficiency and service quality of cross-boundary payments between the two places. It also facilitates economic and trade activities and the flow of people, benefits Hong Kong in elevating its competitive edge, and reinforces its position as an international financial center and a major yuan trading hub.
Global Times
