Hong Kong Monetary Authority: Interconnection between Mainland and Hong Kong Faster Payment Systems progressing smoothly, partial services expected to be launched by mid-year.

The Hong Kong Monetary Authority and the People's Bank of China are actively promoting the interconnection of the two fast payment systems, namely Hong Kong's Faster Payment System (FPS) and the Mainland's Interbank Payment and Settlement System (IBPS). A spokesperson for the Hong Kong Monetary Authority replied to inquiries from Hong Kong and Taiwan, stating that the project is progressing smoothly, with some services expected to be launched in the middle of this year. Details will be announced in due course. According to reports, currently 6 banks are participating in the testing phase, with initial implementation involving only individual to individual (P2P) cross-border remittances, and later expanding to include individual to business (P2B) transactions. Media reports indicate that the first phase of cross-border remittances could be launched as early as the end of June. Hong Kong residents transferring funds to each bank's FPS account for northbound cross-border remittances will have a total annual limit of 200,000 Hong Kong dollars or equivalent, with a daily limit of 10,000 Hong Kong dollars or equivalent, which is not included in the daily maximum of 80,000 RMB that Hong Kong residents can remit to the mainland. For southbound remittances, there is currently no limit on the amount that individuals in the mainland can transfer, but it is subject to the current individual annual forex purchase limit of 50,000 US dollars. The Hong Kong Monetary Authority and the People's Bank of China announced several new measures at the beginning of this year to deepen financial cooperation between Hong Kong and the mainland, including the interconnection of the two fast payment systems, allowing residents of both regions to make instant small-scale cross-border remittances by entering the recipient's phone number or account number.