Cross-border payment goes into effect

The People's Bank of China and the Hong Kong Monetary Authority (HKMA) recently signed a Memorandum of Understanding to establish multi-currency cross-border payment arrangements between the Chinese mainland and Hong Kong, the People's Daily Online quoted the HKMA as saying.

The cross-border payment arrangements went into effect on Mar 16 and covers four currencies; the Hong Kong dollar, the US dollar, the euro and the British pound. Development of cross-border payment arrangements for other currencies will depend on market demand.

The China Construction Bank Corporation, Bank of China Limited, Industrial and Commercial Bank of China Limited and Shanghai Pudong Development Bank Company Limited are the mainland banks involved in the agreement.

"The arrangements will provide more cooperation opportunities for banks in Hong Kong and the mainland, especially in business involving foreign currency exchanges," said Raymond So, an associate professor of finance at the Chinese University of Hong Kong.

So said he expects more cross-border financial arrangements between the mainland and Hong Kong in the future.

CBW News

(China Daily 03/23/2009 page5)