Clearing House and CIPS Sign MoU To Expand Cross-Border Cooperation

Hong Kong Exchanges and Clearing subsidiary Hong Kong Securities Clearing Company and Cross-Border Interbank Payment System operator Cross-Border Interbank Payment Clearing Co. signed a memorandum of understanding today to strengthen cooperation on market expansion and services for overseas members, according to ETNet. The two sides said they will deepen cooperation on market development and network expansion, with plans to broaden member networks, improve liquidity and appeal of RMB investment and financing products, and promote cross-border payments, cash management and securities settlement services. They also aim to enhance the compatibility, interoperability and efficiency of financial infrastructure. Hong Kong Securities Clearing Company CEO Chan Tat-keung said the two firms have long supported connectivity between mainland China and Hong Kong and are working to meet the continued development needs of RMB internationalisation. He added that Hong Kong Securities Clearing Company will provide reliable financial infrastructure support for Hong Kong's role as an international financial centre and the world's largest offshore RMB business hub. Hong Kong Securities Clearing Company said that from March 2025 it will expand membership of the Central Moneymarkets Unit to eligible institutions regulated or supervised outside Hong Kong, to attract more international market participants to Hong Kong's bond market and access the mainland market through Bond Connect. The CMU and CIPS are key platforms under the Hong Kong-mainland financial connectivity framework, and the CMU is the first offshore financial infrastructure to become a direct participant in CIPS, providing delivery-versus-payment settlement services for HKD and RMB transactions in Bond Connect.