The CB provides real-time settlement service for cross-border remittances via the China National Advanced Payment System (“CNAPS”) and the Hong Kong RMB RTGS System Under this arrangement, the PBs can offer RMB remittance service for personal, corporate and institutional customers subject to the applicable local regulatory requirements. However, the cross-border remittances into and out of the Mainland should also comply with the relevant rules and regulatory requirements of the PBOC, including a required genuine underlying trade transaction for trade-related remittances; personal remittances from the deposits accounts in Hong Kong to the same name accounts in the Mainland only, and remittance subject to a daily aggregate limit of RMB80,000* (or equivalent) per person.
* The limit is determined by the PBOC
Cheque clearing service
The CB provides the PBs with local RMB cheque clearing and settlement services via the HK RMB RTGS System. Hong Kong residents can open a personal RMB current account with the PBs in Hong Kong and issue RMB cheques to settle their consumer spending in the Guangdong Province (including Shenzhen). The daily aggregate payment from each RMB current account cannot exceed RMB80,000* per day. The RMB cheques received by the banks in the Guangdong Province (including Shenzhen) will be presented to the CB for settlement and payment through the Mainland clearing and settlement institution. No limitation of amount and usage for the local cheques (including personal and company cheque).
* The limit is determined by the PBOC
RMB Bonds Service
The CB provides PBs with RMB bonds settlement and fiduciary services through the CMU, and the Delivery versus Payment services for RMB-denominated bonds through a linkage with the RMB RTGS System in Hong Kong.
Position squaring service
The CB is appointed by the PBOC as the sole offshore direct member in Hong Kong of the China Foreign Exchange Trading Centre and National Interbank Funding Centre. It is therefore authorised to conduct RMB position squaring in the interbank foreign exchange market in the Mainland and provide position squaring services for qualified RMB exchange transactions of the PBs stipulated in the Settlement Agreement. The qualified RMB exchange transactions include the personal RMB exchange (which must be provided by the PBs; subject to a maximum daily limit of RMB20,000* or its equivalent per person for each transaction conducted through a deposit account and a maximum of RMB20,000* or its equivalent for each transaction in cash), and the exchange transactions conducted due for trade in physical goods. The rate offered by the CB for the position squaring service is quoted based on the prevailing trading exchange rate at the China Interbank Foreign Exchange Market.
* The limit is determined by the PBOC.
Interbank lending business
Given the permission to take part in the National Interbank Funding Centre, the CB can acquire funding in the interbank lending market in the Mainland, in compliance with the relevant regulations stipulated by the PBOC, and provide short-term RMB financing service for offshore PBs.
RMB Repo Facilities
The CB provides PBs with securities sale and repurchase facilities (RMB Repo Facilities) through the CMU, to help facilitate the RMB market liquidity. PBs can pledge eligible securities designated by the CB as collaterals for acquiring intra-day short-term facilities. Please click here to view the list of eligible securities.
RMB Fiduciary Account Service
In order to effectively reduce the PBs’ counterparty risk exposure to the CB, the CB offers the RMB Fiduciary Account Service for PBs. Under the RMB Fiduciary Account Scheme, PBs that wish to open a RMB Fiduciary Account with the CB shall sign the service regulations for Renminbi Fiduciary Account. Upon completion of the account opening procedures, PBs can transfer RMB funds to their respective Fiduciary Accounts maintained under the RMB RTGS System in Hong Kong before the business cut-off. Then, the CB will transfer the funds to the Omnibus Participating Bank Account maintained by the CB on behalf of the PBs with the PBOC in the Mainland of China.
RMB Banknotes Services
The CB provides PBs with RMB banknotes services, including RMB banknotes deposit and withdrawal, RMB banknotes exchange and position squaring and replacement of damaged banknotes. The CB also offers quality and efficient services of supplying and repatriation of RMB banknotes for the Taiwan region through the designated RMB banknotes business banks.
RMB Bank Card Service
Through the RMB RTGS System in Hong Kong, the CB provides funds clearing services for both RMB bank card issuing PBs and China UnionPay (“UnionPay”). After payment is made in the Mainland with the RMB UnionPay cards issued by the PBs, settlement will be made between UnionPay and the CB, and subsequently between the CB and PBs. Under this arrangement, cross-border funds clearing can be conducted between PBs in Hong Kong and the banks in the Mainland.