context: Cross-border payment connect represents an advance in financial infrastructure integration between mainland China and Hong Kong. The system connects mainland China's Internet Banking Payment System with Hong Kong's Faster Payment System, enabling real-time cross-border remittances between the two jurisdictions. This development strengthens Hong Kong's role as an offshore RMB hub and supports broader financial integration initiatives between mainland China and Hong Kong, building on existing cross-border financial cooperation frameworks.
Cross-border payment connect officially launched on 22 June, enabling real-time cross-border remittances between mainland China and Hong Kong residents through interconnected payment systems.
Hong Kong Monetary Authority data showed 6,900 northbound transactions averaging C¥800 each and 19,000 southbound transactions averaging C¥3,100 each by 23 June. Features of the initiative include
- support for three main scenarios: southbound remittances from mainland residents to Hong Kong accounts, northbound remittances from Hong Kong residents to mainland accounts and bilateral payments between individuals and institutions for education fees, utilities, medical payments and salary transfers
- daily limits set at HK$10,000 per person for northbound transfers and US$50,000 annual quota for southbound transfers under existing foreign exchange regulations
- twelve banks will participate in the initial phase, including six from the mainland and six from Hong Kong, with expansion planned
- Agricultural Bank will pilot in Shenzhen before expanding to Guangdong and Hainan in July, then nationwide
- the system eliminates intermediary banks, reducing costs and enabling instant settlement compared to traditional 1–3 day processing times
Liu Bin 刘斌 Shanghai Free Trade Zone Research Institute noted that the connection between 17 million Hong Kong FPS users and 298 million mainland IBPS users strengthens Hong Kong's offshore RMB hub function.