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HKMA Discussing 'Cross-border Payment Connect' With PBOC, MoU to be Signed Shortly
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Eddie Yue, Chief Executive of the HKMA, said that discussions with the People's Bank of China (PBOC) on a Cross-border Payment Connect scheme between Mainland and Hong Kong were underway recently, and a Memorandum of Understanding on its commencement would be signed shortly to provide a framework of cooperation for the commencement of cross-border payment interconnection between the two sides. The objective of the scheme is to promote more secure, efficient and convenient cross-border payment and clearing services to further facilitate economic activities and people-to-people exchanges between the two places in future. Details of the relevant work will be announced in due course. In an article in “inSight”, HKMA’s official column, Yue said that in recent times, the financial authorities of the two places have announced a number of policies and measures to promote and deepen cross-border financial interconnection and cooperation. One of the highlights is the "Three Connection, Three Facilitation" announced by the HKMA and the PBOC at the beginning of this year, a 6-point policy package centred around the internationalisation of RMB and support for facilitating business and convenience of people in the Greater Bay Area. Most of these policies have already been implemented smoothly. Enhancement of the Cross-border Wealth Management Connect, expansion of RMB cross-border pilot scheme in Hong Kong, and facilitation of cross-border payment for home purchases in Mainland cities in the Greater Bay Area have entered the implementation stage. On financial market connectivity, the HKMA and the Mainland financial authorities are actively exploring further expansion of the use of onshore bonds as collateral in the offshore market. A recent breakthrough is the use of onshore bonds under the Northbound Bond Connect as performance collateral for the Northbound Swap Connect. This measure will also help to maximise the linkage and synergy between the Bond Connect and the Swap Connect and enhance investors' active participation in the mutual market access. The relevant parties are striving to reach a consensus in the near future and make an announcement as soon as possible. AAStocks Financial News |
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