HKMA, PBOC Sign Cross-Border Payment Agreement

The Hong Kong Monetary Authority (HKMA) has signed a memorandum of understanding with the People's Bank of China (PBOC) to enhance cross-border payment systems, specifically the Faster Payment System (FPS). This agreement aims to facilitate greater commerce and ease of movement for residents between Hong Kong and mainland China. The HKMA's CEO previously mentioned that this framework would provide a 'safe, efficient and convenient means for cross-boundary payment and settlement'. Currently, there is a remittance cap of 80,000 yuan (approximately US$11,015) per day from Hong Kong to the mainland, with future limits to be decided by the State Administration of Foreign Exchange. This initiative is expected to benefit Hong Kong residents looking to invest in property within the Greater Bay Area and is part of broader efforts to bolster Hong Kong's status as a global financial hub. The cooperation also includes plans to expand the use of digital RMB and other financial services.