New York Mellon Bank and the Hong Kong Monetary Authority CMU jointly developed the American withholding tax management service.

On February 26, Mellon Bank of New York announced the launch of a new service called the US Pre-Withholding Tax Management Service, which is a pioneering solution that allows US issuers to tap into the offshore Renminbi market in Hong Kong by issuing Dim Sum bonds. Mellon Bank of New York developed this unique service in collaboration with the debt instrument clearing system (CMU) of the Hong Kong Monetary Authority, enabling US issuers to access a wider pool of liquidity and benefit from lower financing costs in Hong Kong and mainland China, while complying with US withholding tax regulations on payments to foreign individuals and entities. This service also expands the range of offshore Renminbi bonds that mainland Chinese institutional investors can invest in, providing more investment opportunities. Fangfang Chen, President of Mellon Bank in the Asia-Pacific region, expressed her delight in collaborating with CMU to launch this unique solution. As global investors' demand for Renminbi-denominated investment opportunities continues to grow, this service removes key barriers for US issuers looking to benefit from the new bond connect program between Hong Kong and mainland China. It is reported that Hong Kong is the largest offshore Renminbi center in the world, with Dim Sum bonds issued in the first 8 months of 2023 reaching 343 billion Renminbi, a 62% increase year-on-year. Chen Daqiang, President of CMU at the Hong Kong Monetary Authority, expressed his pleasure in collaborating with Mellon Bank of New York to allow issuers to access onshore and offshore Renminbi funds through the bond connect and Hong Kong's financial infrastructure.