Mainland China, Hong Kong launching Payment Connect scheme to aid capital flows

China’s central bank is launching a new connect programme with Hong Kong to facilitate cross-border payments – Beijing’s latest move to open up its financial sector and also leverage the southern financial centre to better connect with the rest of the world.

The Payment Connect programme will link the mainland’s Internet Banking Payment System and Hong Kong’s Faster Payment System (FPS), allowing users to make payments and wire money faster and more conveniently.

The programme will begin on Sunday.

“It’s another milestone in deepening financial cooperation between the mainland and Hong Kong. It fully indicates the central government’s determination to consolidate and improve Hong Kong’s international financial status,” Pan Gongsheng, governor of the People’s Bank of China, said at the launch ceremony on Friday in Beijing.

“[The connect programme] will improve the efficiency of cross-border payments, facilitate economic and trade cooperation, as well as boost people exchanges,” he said. “It will bring new vigour for Hong Kong’s development and also boost cross-border use of the yuan.”

Eddie Yue, chief executive of the Hong Kong Monetary Authority, said the scheme provided residents and institutions with a safe, efficient and convenient payment option, while also hailing the deepening economic cooperation.