Hong Kong Renminbi Clearing Platform to Conduct Exchange, Supply and Repatriation of Renminbi cashnotes for Taiwan

According to the Cross-strait Financial Cooperation Agreement signed in 2009, it was agreed that the exchange, supply and repatriation of cashnotes would be conducted through suitable means with commercial banks as intermediaries. Subsequently, further to discussions among the parties concerned, it has been determined that the arrangement for the exchange, supply and repatriation of renminbi cashnotes with Taiwan is to be conducted, with the Hong Kong Renminbi Clearing Bank as the intermediary, through the renminbi platform in Hong Kong.

Under the arrangement, the Renminbi Clearing Bank in Hong Kong will provide renminbi cashnote exchange and related services to the Hong Kong branches of eligible Taiwan commercial banks as determined by Taiwan. In turn, the Taiwan head offices of such commercial banks will provide renminbi cashnote exchange services to other authorised financial institutions in Taiwan, for the purpose of serving personal customers locally.

To facilitate the related operations, the People's Bank of China and the Hong Kong Monetary Authority (HKMA) have signed a Memorandum of Cooperation in relation to the Renminbi Clearing Bank's Taiwan renminbi cashnote business. The Renminbi Clearing Bank in Hong Kong will also be signing a settlement agreement with the Hong Kong branch of the relevant commercial banks soon.

The Financial Secretary, Mr John Tsang, welcomed the arrangement, and said, "Hong Kong's established renminbi clearing platform is providing a practical arrangement to facilitate cross-strait cooperation on monetary management. This also underscores that Hong Kong, as a leading international financial centre in the region, can play an important role in and contributes further to cross-strait financial cooperation and development."

The Chief Executive of the HKMA, Mr Norman Chan, said "I am glad to see the implementation of the arrangement for the exchange, supply and repatriation of renminbi cashnotes with Taiwan. The renminbi financial platform in Hong Kong is well developed and is capable of handling different kinds of renminbi financial transactions. I look forward to more cross-strait financial activities being conducted using Hong Kong's financial platform."

For further enquiries, please contact:
Anissa Wong, Manager (Communications), at 2878 1802 or
Yokee Wong, Manager (Communications), at 2878 1213

Hong Kong Monetary Authority
13 July 2010