Last week, the Monetary Authority and the People’s Bank announced several measures to deepen financial collaboration between Hong Kong and the CSI China Mainland Financials Index, one of which is to promote the interconnection of the two regions’ rapid payment systems to facilitate instant small-value cross-border remittances for residents. According to sources cited by the Hong Kong Economic Journal, the target for cross-border remittances is to pilot operations in April, and it is expected to set transfer limits, initially prioritizing person-to-person transfers (P2P), with a formal service launch anticipated in June, though the actual timing will depend on circumstances.

Currently, Hong Kong residents have a daily remittance limit of 0.08 million yuan for northbound transfers, and whether the limit for cross-border remittances through FPS and IBPS interconnection will be an additional remittance limit or included within the existing 0.08 million yuan limit remains to be further explored.

Reports indicate that initially, P2P cross-border transfers may be implemented first, followed by expanding to merchant payment applications. The actual implementation date still depends on when specific details are finalized, with the aim of launching the service as early as June. Before the official launch, relevant parties hope to conduct trials in April through some major banks to ensure smooth operations when the service is formally launched.

Sources: FUTUBULL