Joint Clearing Facility for HKD Cheques Presented in Shenzhen

The Hong Kong Monetary Authority (HKMA) announced today (3 December 1997) that agreement has been reached with the Shenzhen Branch of the People's Bank of China (PBoC) on a new Joint Clearing Facility to speed up the processing of Hong Kong Dollar cheques issued by banks in Hong Kong and presented in Shenzhen.

The Joint Clearing Facility, which will be implemented by the Hong Kong Interbank Clearing Limited (HKICL) and the Shenzhen Financial Electronics Settlement Centre (SFESC), will take effect on 2 January 1998 (Friday). The Facility will significantly reduce the time required for clearing Hong Kong Dollar cheques presented in Shenzhen down to 2 days.

Under the existing practice, the clearing and settlement of Hong Kong Dollar cheques issued by banks in Hong Kong and presented in Shenzhen may take up to 14 days before good funds can be credited to the payees' accounts in Shenzhen.

"I welcome the introduction of the new Joint Clearing Facility, which is part of the HKMA's on-going efforts to develop our market infrastructure. By reducing settlement time and risks, the Facility will enhance and facilitate the economic and financial links between Hong Kong and Shenzhen. The Facility is also another example of practical co-operation between the PBoC and the HKMA under the "One Country, Two Systems" framework," said Mr. Joseph Yam, Chief Executive of the HKMA.

Hong Kong Monetary Authority

3 December 1997