Renminbi bank card holders on the Chinese mainland will soon be able to use their cards in Hong Kong and vice versa, a move expected to significantly boost consumption and ease access to money in the two areas.

The mainland bank card network will be linked to Hong Kong "very soon," China UnionPay, the Chinese mainland's only national payment network, said in a statement.

It will allow UnionPay bank card users to pay bills electronically and draw Hong Kong dollars out of automatic teller machines in Hong Kong.

Upon approval, Hong Kong banks will also be able to issue renminbi cards, giving Hong Kong residents access to the UnionPay's payment network on the mainland with over 320,000 points of sale terminals and more than 54,000 ATMs.

Last Wednesday, the People's Bank of China, the central bank, signed an agreement with the Hong Kong Monetary Authority to conduct renminbi business in Hong Kong.

According to a co-operation memorandum, banks in Hong Kong will be able to provide renminbi services in four areas including deposits, yuan-HK dollar exchanges, cash remittances and credit card services.

The central bank designated the clearance bank in Hong Kong and China UnionPay to lead the credit card programme.

China UnionPay now has 109 members.

It has been working closely with Hong Kong financial institutions to link bank card networks. It is also expanding its merchants' networks in Hong Kong.

"The plan has received overwhelming response among merchants in Hong Kong, which will bring them enormous business from mainlanders," China UnionPay official said.

For mainlanders, not having to carry large amounts of cash to Hong Kong or exchange currencies in banks will be a distinct advantage over current practices.

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