What types of RMB clearing services are currently offered by BOCHK? A: As the sole Clearing Bank for RMB business in Hong Kong, BOCHK provides Participating Banks with diversified RMB clearing services, including RMB settlement account, deposit and withdrawal of RMB banknotes, remittance, exchange and bonds settlement, as well as the Intraday Repo-Facilities and Fiduciary Account Scheme launched in 2011.
What are the required documents for application for opening of a RMB settlement account with BOCHK by a Participating Bank? A: A Participating Bank, that wishes to apply for opening of a settlement account, must sign the Agreement for Clearing and Settlement of Renminbi Business, and submit the completed Account Opening Form for Renminbi Settlement Account, CNAPS Application Form and RMB RTGS Enrollment Form.
RMB Settlement Platform
What are the major functions of the RMB Real Time Gross Settlement (“RTGS”) System in Hong Kong? A: The RMB RTGS System in Hong Kong supports RMB interbank funds transfer, Payment versus Payment exchange transactions between RMB and USD / EUR / HKD, and the Delivery versus Payment for RMB-denominated bonds through the linkage with Central Moneymarkets Unit Processor (“CMUP”).
What are the operating hours of the RMB RTGS system in Hong Kong? A: With effect from 25 June 2012, the operating hours of the RMB RTGS system in Hong Kong have been extended from 08:30 - 18:30 to 08:30 - 23:30 (Monday to Friday, GMT +8) to cover the office hours in Europe and part of the United States, enabling customers in different time zones to enjoy the convenience of same-day settlementNote 1 of their RMB Telegraphic Transfers and Express TransfersNote 2 .
Notes: 1. The outward remittance instructions submitted before the cut-off time of respective Participating Banks will be processed by BOCHK on the same day. However, the time for receipt of funds by the beneficiaries depends on the service hours of the beneficiary banks. 2. The extension of service hours is not applicable to RMB Telegraphic Transfer and Express Transfer (CHATS) to and from the Mainland of China.
What is China National Advanced Payment System (CNAPS)? A: The CNAPS is a RMB payment system in the Mainland of China. Each Participating Bank is assigned with a unique 12-digit CNAPS bank code by the Peoples’ Bank of China. Remitting banks in the Mainland can simply input the CNAPS bank code of a Participating Bank for direct credit of funds through CNAPS into the settlement account maintained by the Participating Bank with the Clearing Bank, and vice versa. Since each branch of the Mainland banks has its unique CNAPS bank code, the Participating Banks are able to enjoy accurate point-to-point remittance service, minimising the remittance time.
RMB Business in Hong Kong
Are Participating Banks allowed to offer RMB investment products to customers? A: Participating Banks are allowed to offer Renminbi investment products subject to such factors as legal restrictions, regulatory requirements and market conditions in Hong Kong. There is no extra restriction in the Settlement Agreement on the offer of RMB-denominated investment products.
Can Participating Banks offer RMB deposits accounts for corporate customers? A: Yes, Participating Banks can offer RMB accounts for corporate customers according to local rules and regulatory requirements. Currently, Designated Business Customers (DBCs) can open RMB accounts with the Participating Banks in Hong Kong according to relevant requirements for handling the RMB banknotes received during their ordinary course of business. They can also open other RMB accounts for general purposes.
If a corporate customer receives RMB funds from the Mainland that are not related to cross-border trade transactions, can such RMB funds be converted into another currency? A: For RMB funds not related to cross-border trade remitted from the Mainland of China, there is no restriction with respect to the provision of conversion services by Participating Banks if they do not square the corresponding open position with the Clearing Bank, or if they seek to square such open position with other Participating Banks. Participating Banks should exercise care in this regard in managing the associated foreign exchange risks.