HKEX (00388) signed a memorandum of cooperation with a cross-border clearing company to enhance the construction of Hong Kong's offshore Renminbi settlement infrastructure.

On July 7, Hong Kong Exchanges and Clearing Limited (HKEX, 00388) announced that they have signed a memorandum of cooperation with the operator of the Cross-Border Interbank Payment System (CIPS) - Cross-Border Interbank Payment Clearing Limited (Cross-Border Clearing Company) to explore deepening cooperation in cross-border Renminbi business and supporting the long-term development of the fixed income and currency ecosystem in Hong Kong. According to the memorandum of cooperation, HKEX's subsidiary, Hong Kong OTC Clearing Limited (OTC Clearing Company), intends to submit an application to become a direct participant in CIPS by the end of 2026. The Cross-Border Clearing Company will provide the necessary guidance and training for this application. Upon becoming a direct participant in CIPS, the OTC Clearing Company will be able to settle Renminbi funds directly through CIPS, providing its participants with more efficient cross-border Renminbi clearing and settlement services. HKEX and the Cross-Border Clearing Company will also leverage their respective financial market infrastructures to deepen cooperation in product and business development, market expertise sharing, and promoting the development of cross-border Renminbi services. Charles Li, Chief Executive Officer of the HKEX Group, and Wang Hongbo, Chairman of the Cross-Border Clearing Company, exchanged the memorandum of cooperation at today's Hong Kong Fixed Income and Currency Summit and Bond Connect Forum, witnessed by guests including Pan Gongsheng, Governor of the People's Bank of China, John Lee Ka-chiu, Chief Executive of the Hong Kong Special Administrative Region, and Paul Chan Mo-po, Financial Secretary of the Hong Kong Special Administrative Region. Charles Li, Chief Executive Officer of the HKEX Group, said, "We are pleased to sign the memorandum of cooperation with the Cross-Border Clearing Company. This marks an important step for HKEX towards becoming a participant in CIPS, which will help strengthen the infrastructure of Hong Kong's offshore Renminbi market. Becoming a direct participant in CIPS will enhance the settlement capability of the OTC Clearing Company, and lay the foundation for HKEX to further enrich fixed income and currency products and optimize infrastructure, consolidating Hong Kong's position as a leading offshore Renminbi center globally." CIPS is the main channel for cross-border Renminbi payments and clearing, supervised and managed by the People's Bank of China. As of June 2026, CIPS has 210 direct participants, with operations covering over 5,200 banks in 191 countries and regions worldwide.