RMB Clearing Bank's Services

Bank of China (Hong Kong) Limited, as the sole Clearing Bank for RMB business in Hong Kong, has been working closely with the People's Bank of China ("PBOC") and Hong Kong Monetary Authority ("HKMA") to implement, optimise and enhance the operation of RMB business, under the policy guidance of both regulatory authorities. We are committed to providing professional and leading RMB clearing services with our mission to reinforce Hong Kong's status as an offshore RMB business centre.


Development

December 2003

Bank of China (Hong Kong) was appointed by the People's Bank of China ("PBOC") as the Clearing Bank ("CB") for Renminbi ("RMB") business in Hong Kong.

February 2004

The CB launched clearing services for personal RMB business in Hong Kong, including deposits, remittance and exchange. RMB bank card clearing service was launched in April of the same year.

March 2006

To cater for the expanded scope of RMB business, the CB has developed the RMB Settlement System after consultation with the Hong Kong Monetary Authority.

The offshore RMB Settlement System, the first of its kind in the world, commenced to operate in Hong Kong. Meanwhile, the CB launched RMB personal cheque clearing service.

January 2007

Bank of China (Hong Kong) was authorised to continue to serve as the CB for RMB business in Hong Kong by the PBOC. To cater for the bond issuance in Hong Kong by the Mainland financial institutions, the CB has provided RMB deposits, exchange and remittance clearing services to the RMB bond issuers.

July 2009

Bank of China (Hong Kong) signed the "Clearing Agreement Between the People's Bank of China and Bank of China (Hong Kong) Limited in Relation to Renminbi Business" with the PBOC to provide the Participating Banks ("PBs") with clearing services for trade settlement. Corporations in Hong Kong, China, Macao, China and ASEAN countries are eligible to use RMB as the settlement currency for cross-border trade transactions.

July 2010

Bank of China (Hong Kong) signed the revised "Settlement Agreement on the Clearing of Renminbi Businesses" with the PBOC. Following the revision of the Settlement Agreement, the scope of RMB business clearing service has been extended from Hong Kong, China, Macao, China and ASEAN countries to other regions over the world. The PBs of Hong Kong and overseas can provide, subject to their respective local regulations and market demands, RMB services to various corporate and institutional customers. As for personal RMB business, wider use of RMB funds has been allowed in Hong Kong. Overseas markets other than Hong Kong and Macao can also conduct different types of personal RMB business according to their respective local regulations.

Under the revised Settlement Agreement, cross-border flows of RMB funds remain regulated by the rules and requirements in the Mainland of China, to ensure the development of RMB businesses in overseas markets in an orderly manner.

February 2011

The CB launched the services of securities sale and repurchase facilities (RMB Repo Facilities) which have been provided to the PBs through the Central Moneymarkets Unit ("CMU") to facilitate their intraday liquidity management in the RMB Settlement ("RTGS") System.

April 2011

The CB launched the RMB Fiduciary Account Scheme for PBs. The Scheme can effectively reduce the PBs' counterparty risk exposure to CB in the RMB funds deposit and help promote the long-term development of RMB business in Hong Kong.

November 2011

Bank of China (Hong Kong) signed the new "Settlement Agreement on the Clearing of Renminbi (RMB) Businesses" with the PBOC. Under the Agreement, Bank of China (Hong Kong) continues to serve as the CB for RMB Business in Hong Kong, offering impartial, timely, accurate and professional RMB clearing services to all the PBs in Hong Kong and overseas.

June 2012

The CB extended the service hours of RMB Real Time Gross Settlement System (“RTGS system”) in order to cover the office hours in Europe and part of the United States. The service runs from 8:30 am to 11:30 pm (Monday to Friday, Hong Kong Time). Under this arrangement, Participating Banks in Europe and the United States are able to conduct RMB transactions in real time through the RMB RTGS System in Hong Kong, thus reducing the settlement risk exposure of their funds and facilitating the development of offshore RMB business.

January 2013

With the support of the Shenzhen and Hong Kong’s regulatory authorities, the CB launched the Cross-border RMB Clearing Extension Service. The cut-off time of cross-border RMB clearing service extended from 4:30 pm to 10:30 pm, which further facilitated the development of RMB business both in Hong Kong and overseas regions.

February 2013

The CB launched the RMB Fixed Deposit Service for Participating Banks. The service further broadened channels for local and overseas Participating Banks to use RMB funds with CB’s enhanced competitiveness.

September 2014

The CB successfully migrated to PBOC second generation of the China National Advanced Payment System, facilitating the cross-border clearing service for Participating Banks.

October 2014

The CB announced a further extension of its RMB clearing service hours, being the world’s first clearing system to cover time zones in Europe, America and Asia. The service runs 20.5 hours per day, from 8:30 am to 5:00 am the following day (Monday to Friday, Hong Kong Time), offering the settlement of the same-day value transactions. In addition, this is also supported by CB’s 24-hour enquiry service.

March 2015

In addition to the prevailing codewords, the CB added the RMB cross-border remittance transaction codewords published by SWIFT Payment Market Practice Group. This global standard adoption provides more convenience for Participating Banks.

July 2015

To align with the extension of clearing service hours to 5:00 am of the following day, the CB also extended the clearing service hours of RMB RTGS System. The service hours of the RMB RTGS System are from 8:30 am to 5:00 am of the next day (Monday to Friday, Hong Kong Time). Real-time RMB clearing services with same day value transactions are also provided in the above 20.5 service hours.

September 2015

According to the latest policy by PBOC, foreign exchange spot transactions with the RMB CB on positions arising from both service trades and direct investment is newly added. The relaxation further enriched type of transaction eligible for position squaring service.

The CB also launched an innovative service, Extended Clearing Service (“FINInform Service”) in the Hong Kong RMB RTGS system, building a new system architecture. This new payment function allows global banks to become Global Users and facilitates Participating Banks to provide RMB real time clearing service.

July 2016

Upon approval by the PBOC, the CB became the first offshore bank to join the Cross-border Interbank Payment System (“CIPS”) as a direct participant and successfully made its first cross-border payment via CIPS on 11 July 2016.

June 2017

BOCHK signed the new "Settlement Agreement on the Clearing of Renminbi Businesses" with the PBOC. Under the Agreement, BOCHK continues to serve as the Clearing Bank for RMB Business in Hong Kong, offering impartial, timely, accurate and professional RMB clearing services to all the Participating Banks in Hong Kong and overseas.

Services and Products

Remittance Service

The CB provides real-time settlement service for cross-border remittances via the China National Advanced Payment System ("CNAPS"), CIPS, the Shenzhen Financial Settlement System (“SZFSS”) 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 the direct member 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 on the Mainland and provide position squaring services for qualified RMB exchange transactions of the Participating Banks as stipulated in the Settlement Agreement. The qualified RMB exchange transactions include goods trade, service trade, bond connect related business and direct investment. The rate offered by the CB for the position squaring service is quoted based on the prevailing trading exchange rate from the China Interbank Foreign Exchange Market.

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.

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.