Chen Weimin: Starting next year, elderly residents in Hong Kong who benefit from government cash assistance for seniors can transfer the funds to designated bank accounts in mainland China.

On November 21, Chen Weimin, Deputy Chief Executive of the Hong Kong Monetary Authority, attended the signing ceremony of the memorandum of cooperation for the cross-border cash assistance arrangement and delivered a speech. He pointed out that currently, eligible elderly residents in Guangdong and Fujian who receive government cash assistance need to arrange cross-border transfers on their own or use ATM cards issued by Hong Kong banks to withdraw cash in mainland China. The new arrangement will provide these elderly residents with an additional option, allowing them to receive assistance more directly into their mainland personal bank accounts even while residing in mainland China. It is reported that the Hong Kong Social Welfare Department signed a cooperation memorandum with BOC HONG KONG and the China Industrial and Commercial Bank of China (Asia) to launch an optimized cash assistance distribution arrangement in mid-next year. Elderly Hong Kong residents who retire in Guangdong and Fujian provinces will be able to choose to have the government directly deposit the funds into their designated bank accounts in mainland China. Chen Weimin expressed his delight that BOC HONG KONG and ICBC (Asia) have become the designated banks for this new arrangement. The two banking groups have a significant advantage in terms of their network in mainland China, with a combined total of nearly 3,800 branch locations in Guangdong and Fujian provinces. By leveraging the experience and strength of the banking groups in cross-border business, a faster and more direct upgrade plan for cross-border remittances of government assistance funds will be provided. Implementing this arrangement involves a lot of preparatory work, including designing operational processes, developing systems, and coordinating the branches of the two banks. The Hong Kong Monetary Authority team is also pleased to have contributed to this process and assisted in communication between the Hong Kong SAR government and banks, as well as coordinating with mainland financial regulatory authorities to ensure that policies related to cross-border payments can accommodate this arrangement. Caring for the elderly and those in need in society, and promoting financial development may seem like two unrelated topics, but both are fundamentally about "putting people first". The Hong Kong Monetary Authority, along with the banking industry, has put considerable effort into promoting financial literacy in recent years, supporting the industry in introducing more convenient measures for the elderly, promoting innovation while considering inclusivity, and meeting the needs and expectations of different segments of society for banking services. In terms of public education and promotion, the focus has been on improving the knowledge of vulnerable community customers in using banking services correctly and enhancing public awareness of fraud prevention. On the other hand, with the further integration of social and economic development in the Guangdong-Hong Kong-Macao Greater Bay Area, there has been more frequent interaction between people in the two regions. In recent years, the Hong Kong Monetary Authority, along with regulatory authorities and the banking industry in both regions, has actively explored more cross-border convenience arrangements, hoping to support, facilitate, and provide financial support for Hong Kong residents in cross-border living, working, and retirement. This arrangement provides a more convenient and real-time remittance channel for residents in both regions who need to make cross-border payments. Since the launch of the service, the number of participating institutions in both regions has gradually increased, and more optimization measures will be explored in terms of user experience and usage scenarios in the future. Additionally, earlier this year, a page devoted to frequently asked questions (FAQs) about cross-border remittances was added to the Hong Kong Monetary Authority's website, explaining policy arrangements and feasible channels for the industry and the public to address common issues encountered in cross-border remittances. Chen Weimin believes that after signing the memorandum, all parties involved will work at full speed to formally launch the cross-border distribution arrangement in the near future, bringing greater convenience to elderly retirees crossing the border.