In consequence to the increasing request for fast and convenient transactions between mainland China and Hong Kong, Popular Bank of China (PBOC) and Hong Kong Monetary Office (HKMA) launched on 22 June 2025 a fresh strategy ‘跨境支付通’(Cross-Border Payment Link). This solution is designed to revolutionize financial flows between both markets, offering residents instant, inexpensive and safe transfers. China and Hong Kong have separate currencies: yuan and Hong Kong dollar. The Hong Kong currency is interchangeable, straight dependent on the US dollar. Due to historical developments, transactions between Hong Kong and China have so far been made through abroad institutions with SWIFT in the lead.
How does the fresh strategy work?
Connects 2 payment systems:
Chinese interbank settlement strategy IBPS (Internet Banking Payment System).
Hong Kong strategy FPS (Fast Payment System, known as ‘轉數快’).
Instant transfers: adequate Telephone number of the consigneeto transfer the money in seconds.
Supports 2 currencies: RMB (CNY) and HKD (Hong Kong Dollar).
Low costs: Elimination of intermediaries reduces transaction fees.
Who's Cross-Border Payment Link for?
Chinese residents: They can send money to Hong Kong for purposes specified as:
fees for the survey of children,
online shopping,
medical payments.
Hong Kong residents: They can transfer funds to China to:
remuneration for work,
social benefits,
daily expenditure.
Transaction limit:
For regular transfers – up to 80,000 RMB (about $11,000) per day.
For peculiar purposes (e.g. tuition) — higher limits after verification.
Benefits for the economy and society
Support for financial integration
The strategy facilitates the movement of capital, which is crucial for Greater Bay Area (great Guangdong-Hongkong-Macau area).
Strengthening RMB in global transactions
Another step in internationalisation of yuan, reducing dependence on the dollar.
Simplifying everyday life
Citizens no longer request to usage SWIFT transfers, which are slower and more expensive.
Which banks already participate in the program?
China:
Industrial and Commercial Bank of China (ICBC)
Bank of China (BOC)
China Construction Bank (CCB)
Agricultural Bank of China (ABC)
Bank of Communications
China Merchants Bank
Hong Kong side:
Bank of China (Hong Kong)
ICBC (Asia)
CCB (Asia)
HSBC
Hang Seng Bank
Bank of East Asia
Further institutions will join the strategy in the future.
Why does it matter?
Hong Kong remains key China global Financial Centreand the fresh strategy strengthens its role.
This is the next step in digital transformation of the Chinese payment system, after introduction e-CNY (digital yuan).
The authorities hope that the service will attract more abroad companies who will want to usage faster settlements at RMB.
Future prospects
Development new features, e.g. integration with e-commerce platforms.
Possible enlargement to Macau and another ASEAN countries.
Further automation of business payments.
Cross-Border Payment Link is not only easier for average citizens, but besides China's strategical decision in global financial competition. It shows that Beijing is betting on technological innovation and greater independency from Western payment systems.
Source:
Leszek B. Glass
Email: [email protected]
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