HKIMFR-大湾区跨境支付和结算系统：现行实践与最新发展

Cross-boundaryPayment

andSettlementSystemsintheGreaterBayAreaCurrentPracticesandRecentDevelopmentsMarch

2023Hong

Kong

Institute

for

Monetary

and

Financial

ResearchHKIMRApplied

Research

ReportNo.1/2023ContentsPagesForeword234AcknowledgementsExecutiveSummaryChapter1

FinancialIntegrationintheGreaterBayArea(GBA)HongKongservesasasuper-connectorbetweentheMainlandandinternationalfinancialmarkets7Chapter2

Overview

ofPayment

andSettlementSystems1322CurrentstatusandchallengesininternationalmarketsChapter3

Cross-boundary

Payment

andSettlementLinkagesBetweenHongKongandtheRestoftheGBAEmergingtechnologiesprovideopportunitiestostrengthenfinancialconnectivityChapter4

ViewsfromMarketParticipants

inHongKong3444OursurveyrevealsasustainedinterestintheGBAdespitethechallengesChapter5

ReapingtheBenefitsofFinancialIntegrationintheGBAConsiderationstowardsacloserfinancialintegrationConclusions5052535557AppendixA:

BackgroundoftheGBASurveyAppendixB:

ListofAbbreviationsAppendixC:

Glossary

ofTechnical

TermsAppendixD:

ReferencesForewordThe

Guangdong–Hong

Kong–Macao

Greater

BayArea

(GBA)

is

composed

of

Hong

Kong,

Macao,

andnine

cities

along

the

Pearl

River

Delta.

With

apopulation

of

more

than

85

million

and

a

combinedgross

domestic

product

of

more

than

US$1.6

trillion,the

GBA

is

economically

vibrant

and

providesHongKong’s

financial

services

industry

with

an

enormouspotential

to

expand

its

businesses

by

takingadvantage

of

the

area’s

vast

market

and

pilotliberalisation

initiatives,

such

as

the

WealthManagement

Connect

scheme.

To

foster

financialconnectivity

within

the

GBA,

it

is

important

tounderstand

the

financial

services

industry’s

currentchallenges,

including

those

related

to

cross-boundarypayment

and

settlement

systems,

and

developfeasiblesolutions.highlighted

as

usefulapproaches

forimproving

theefficiency

and

quality

of

cross-boundary

paymentsand

settlements.

Multilateral

arrangements

such

asthe

mBridge

and

various

cross-boundary

investmentschemes

are

also

emphasised

as

important

channelsto

increase

the

connectivity

of

financial

markets.

Thisreport

also

discusses

the

results

of

a

survey

andinterviews

commissioned

by

the

Hong

Kong

Institutefor

Monetary

and

Financial

Research

(HKIMR),

whichinvestigates

market

participants’

current

practicesand

shows

that

the

majority

of

the

surveyed

financialinstitutions

highlighted

the

essentiality

of

cross-boundary

payment

and

settlement

systems

insupporting

their

GBA

outreach

activities.

The

reportconcludes

with

considerations

for

facilitatingcross-boundary

payments

and

settlements

in

the

GBA

inboth

technology

and

non-technology-related

areasinthefaceofmajorchallenges.Recently,

emerging

technologies

such

as

artificialintelligence

and

blockchain

have

prompted

profoundchanges

in

the

financial

services

industry.The

HongKong

Monetary

Authority

has

launched

a

‘Fintech2025’

strategy,

which

aims

to

encourage

thefinancial

services

industry

to

comprehensively

adoptemerging

technology

by

2025

and

to

promote

theprovision

of

fair

and

efficient

financial

services

forthe

benefit

of

Hong

Kong.

Some

of

these

technologiescould

also

reshape

cross-boundary

payment

andsettlement

systems

and

promote

financialdevelopmentintheGBA.By

illustrating

the

importance

of

cross-boundarypayment

and

settlement

systems

in

the

GBA

andhighlighting

benefits

and

challenges

shared

bymarket

participants

and

the

implications

of

emergingtechnologies,

we

hope

that

this

report

providesuseful

insights

that

help

the

financial

servicesindustry

and

regulators

in

Hong

Kong

to

furtherdeepenfinancialintegrationintheGBA.This

report

examines

the

current

status

of

cross-boundary

payments

and

settlements

within

the

GBAand

provides

an

overview

of

recent

developments

inHong

Kong’s

financial

market

infrastructure

and

inbusiness

opportunities

in

the

GBA.

Emergingfinancial

technologies,

including

the

Faster

PaymentSystem,

Open

Application

Programming

Interfacefor

the

banking

sector,

and

digital

identity,

areMr

Kwok-Chuen

KwokExecutiveDirectorHong

Kong

Institute

for

Monetary

and

FinancialResearchChiefExecutiveOfficerHongKongAcademyofFinance2Cross-boundary

Payment

and

Settlement

Systems

in

the

Greater

Bay

AreaAcknowledgementsThis

report

has

greatly

benefitted

from

thecontributions

of

various

external

collaborators.

Wethank

the

Financial

Services

and

the

Treasury

Bureau,the

Insurance

Authority,

the

Mandatory

ProvidentFund

Schemes

Authority,

and

the

Securities

andFutures

Commission,

and

various

departments

anddivisions

of

the

Hong

Kong

Monetary

Authority,including

the

External

Department,

the

FinancialInfrastructure

Development

Division,

the

FintechFacilitation

Office,

the

Hong

Kong

FMI

ServicesLimited,

and

the

Communications

Division

for

theircomments

and

suggestions.

We

arealso

grateful

forour

collaboration

with

PricewaterhouseCoopersLimited

in

designing

and

administering

a

surveyentitled

Cross-boundary

payments

and

settlementsfor

a

closer

integration

within

the

Greater

Bay

Areafrom

July

to

October

2022,

and

in

conductinginterviews

with

various

market

participants,

includingbanks,

insurers,

and

asset

managers.

Finally,

we

thanktheHKIMRCouncilofAdvisersforAppliedResearchfor

their

continued

support

for

and

guidance

of

theresearchactivitiesoftheInstitute.3Hong

Kong

Institute

for

Monetary

and

Financial

Research

•

March

2023ExecutiveSummaryThe

Guangdong–Hong

Kong–Macao

Greater

BayArea

(GBA)

has

been

recognised

for

its

strategicimportance

in

supporting

the

growth

and

opening-up

of

the

Mainland

economy.

Deepening

financialintegration

within

the

GBA

is

essential

for

maximisingthe

area’s

advantage

in

supporting

the

country’sfurther

development,

and

such

integration

iscontingent

on

the

establishment

of

a

set

of

well-functioning

payment

and

settlement

channels

tofacilitate

trade

and

capital

flow

across

the

boundary.By

taking

stock

of

current

developments

in

cross-boundary

payments

and

settlements,

we

aim

toidentify

their

associated

challenges

and

considerhow

these

may

be

mitigated

by

emergingtechnologies.the

rest

of

the

GBA

have

significantopportunities

to

expand

their

cross-boundaryfinancial

services,

which

needs

the

support

ofappropriate

payment

and

settlement

channels.The

increasing

popularity

of

cross-boundaryinvestment

schemes,

such

as

WealthManagementConnect,

Bond

Connect,

and

Stock

Connect,

notonly

demonstrates

the

growing

connectivity

ofMainland

and

Hong

Kong

financial

markets

but

alsosuggests

there

is

rising

demand

for

the

establishmentof

efficient

and

secure

channels

that

connectpayment

and

settlement

systems

across

theboundary.Payment

and

settlement

systems

are

a

collectionof

arrangements

that

facilitate

the

transfer

offunds

and

financial

assets.

At

the

front

end,payment

systems

handle

the

transfer

of

small-valuefunds

among

individuals

and

corporations.

At

theback

end,

settlement

systems

process

the

clearingand

settlement

of

large-value

payments

amongbanks

and

other

financial

intermediaries.

Paymentand

settlement

systems

from

different

jurisdictionsare

interconnected,

which

allows

for

financialtransactions

across

boundaries.

Commonly

referredto

as

financial

market

infrastructure,

these

systemsare

crucial

for

maintaining

the

healthy

functioningof

the

financial

services

industry,

and

their

cross-boundary

linkages

are

key

to

facilitating

internationaltrade

and

capitalflow.The

report

begins

with

an

overview

of

thedevelopment

of

the

GBA

and

various

cross-boundaryinvestment

schemes,

and

explains

why

appropriatecross-boundary

payment

and

settlement

channelsare

key

to

financial

integration

in

the

area.

It

thenoffers

a

general

introduction

to

payment

andsettlement

systems,

their

linkages

across

boundaries,and

associated

challenges.

It

also

describes

HongKong’s

payment

and

settlement

systems,

their

cross-boundary

linkages,

and

how

they

can

be

supportedby

emerging

financial

technologies.

Moreover,

basedon

a

survey

and

interviews

commissioned

by

theHong

Kong

Institute

for

Monetary

and

FinancialResearch

(HKIMR),

it

presents

local

financialinstitutions’

views

on

the

challenges

of

cross-boundary

payments

and

settlements

and

how

thesechallenges

can

be

mitigated

using

technologies

andrelated

initiatives.

The

report

concludes

by

offeringsome

considerations

for

facilitating

cross-boundarypayments

and

settlements

and

deepening

financialintegrationwithintheGBA.International

studies

identify

commonchallenges

associated

with

the

use

of

cross-border

payment

and

settlement

channels.

Theprimary

challenges

are

the

high

costs

and

low

speedof

transferring

funds

across

borders,

limitedaccessibility,

and

insufficient

transparency

about

thestatus

and

outcome

of

fund

transfers.

Thesechallenges

may

influence

both

service

providers,Benefitting

from

financial

integration

in

thearea,

financial

institutions

in

Hong

Kong

and4Cross-boundary

Payment

and

Settlement

Systems

in

the

Greater

Bay

AreaExecutive

Summarysuch

as

banks

and

asset

managers,

and

end-users,such

as

individuals

and

corporations.

Some

of

theroot

causes

of

these

challenges

are

fragmented

dataand

technology

standards,

legacy

infrastructures,andlongtransaction

chains.Over

90%

of

surveyed

financial

institutions

inHong

Kong

highlighted

the

importance

ofcross-boundary

payment

and

settlementchannels

to

their

GBA

outreach

activities.According

to

asurvey

commissioned

by

the

HKIMRand

conducted

from

July

to

October

2022,

most

ofthe

surveyed

banks,

insurers,

and

asset

managersintended

to

expand

their

involvement

in

cross-boundary

investment

schemes

in

the

next

2

to

3years.

This

demonstrates

the

essentiality

of

cross-boundary

payment

and

settlement

channels

insupporting

financial

institutions’

outreach

activitieswithin

the

GBA

going

forward.Hong

Kong

has

developed

a

set

of

multi-currency

and

multi-dimensional

payment

andsettlement

systems

that

are

connected

with

thefinancial

market

infrastructures

of

other

GBAcities

to

support

cross-boundary

financialservices.

At

the

front

end,

financial

serviceproviders

have

implemented

various

retail

paymentmethods

within

the

GBA.

For

instance,

a

cross-boundary

electronic

bill

payment

service

allowscustomers

in

Hong

Kong

to

make

bill

payments

tomerchants

in

Guangdong.

At

the

back

end,

cashsettlement

systems

in

Hong

Kong,

namely

ClearingHouse

Automatic

Transfer

Systems

(CHATS),

arelinked

with

the

rest

of

the

GBA

to

settle

cross-boundary

remittances.

These

linkages

guarantee

thesmooth

exchange

of

goods

and

services

across

theboundary.The

survey

respondents

reported

experiencingvarious

technology-

and

non-technology-related

challenges

when

delivering

cross-boundary

financial

services.

On

the

technologyside,

the

respondents

noted

that

some

cross-boundary

financial

transactions

are

still

processedmanually

using

traditional

and

paper-basedmethods,

which

reduces

efficiency

and

increasesthe

probability

of

errors.

In

addition,

somerespondents

also

mentioned

that

diverse

standardsin

messaging

formats

and

communication

protocols,together

with

different

data-sharing

arrangements,prevent

efficient

and

seamless

cross-boundaryinformation

transmission.

On

the

non-technologyside,

some

of

the

respondents

noted

that

differentregulatory

requirements

have

increased

thecomplexity

of

their

financial

service

offerings

in

theGBA.

They

also

noted

that

risk

management

relatedto

anti-money

laundering

(AML)/counter-financingof

terrorism

(CFT)

checks

in

the

cross-boundarycontext

differed

from

those

in

the

domestic

context,and

that

there

are

bottlenecks

related

to

limitationson

cross-boundary

investment

quotas

andremittances.Emerging

technologies

are

being

adopted

toenhance

Hong

Kong’s

financial

marketinfrastructure

and

strengthen

financialintegration

within

the

GBA.

These

technologiesinclude

blockchain,

artificial

intelligence

(AI)/BigData

(BD)

technologies,

digital

identity

technologies,electronic

wallets,

and

data-sharing

techniques.

Forexample,

blockchain

can

improve

cross-boundaryfinancial

services

by

ensuring

the

accuracy

andtraceability

of

recorded

data.

E-wallets

are

a

low-cost

technology

that

increase

the

accessibility

ofcross-boundary

payments,

and

some

Hong

Kong-based

e-wallets

can

now

be

used

for

shopping

anddiningin

Mainland

GBAcities.5Hong

Kong

Institute

for

Monetary

and

Financial

Research

•

March

2023Executive

SummaryDigital

ID,

Open

Application

ProgrammingInterface

(API),

and

AI/BD

technologies

arethethree

most

relevant

technologies

that

therespondents

identified

as

having

the

potentialfor

improving

payment

and

settlementprocesses

in

the

GBA.

The

respondents

remarkedthat

the

adoption

of

digital

ID

could

improve

theprocess

of

remote

on-boarding

and

accountopening

by

reducing

the

compliance

costs

of

AML/CFT

checks.

The

respondents

also

foresaw

thatOpen

API

would

facilitate

the

exchange

ofinformation

and

the

execution

of

instructions

forcross-boundary

payments

and

settlements.Furthermore,

they

believed

that

AI/BD

technologieshad

strong

potential

to

address

existing

challenges,such

as

by

streamlining

compliance

checks,detecting

harmful

activities,

and

improving

riskmanagement.By

taking

stock

of

market

perspectives

and

theexperience

of

other

jurisdictions,

this

reportoffers

several

considerations

for

facilitatingcross-boundary

payments

and

settlements.These

include

technology-related

strategies,

suchas

improving

the

functionality

of

payment

andsettlement

infrastructures,

promoting

the

adoptionof

emerging

technologies,

and

encouraging

theimplementation

of

data-sharing

arrangements.Non-technology-related

strategies

include

fosteringcommunication

between

regulators

and

the

industryand

expanding

the

accessibility

of

financial

servicesacross

the

boundary.

Going

forward,

theseconsiderations

may

contribute

to

further

deepeningof

financialintegration

withintheGBA.6Cross-boundary

Payment

and

Settlement

Systems

in

the

Greater

Bay

AreaChapter1FinancialIntegrationintheGreaterBayArea(GBA)HongKongservesasasuper-connectorbetweentheMainlandandinternationalfinancialmarketsHIGHLIGHTS:•

Financial

integration

within

the

GBA

provides

the

financial

services

industrywithnew

investment

opportunities.•

Through

a

series

of

cross-boundary

investment

schemes,

Mainland

financialmarkets

are

opening

up

gradually

and

prudently,

while

global

investors

cancontinue

to

operate

within

their

familiar

legal

and

regulatory

frameworks,market

practices,

and

languages.•

The

rising

popularity

of

these

investment

schemes

suggests

an

increased

demandfor

efficient

and

secure

cross-boundary

payments

and

settlement

channelsgoing

forward.Chapter

1:

Financial

Integration

in

the

Greater

Bay

Area1.1.

OVERVIEWOFTHEGREATERBAY

AREAMacao

Cooperation

in

the

Development

of

theGreater

Bay

Area’

in

Hong

Kong.1

This

FrameworkAgreement

specifies

the

important

cooperation

areasin

the

development

of

the

GBA

and

establishescollaboration

goals.

Since

then,

the

development

ofthe

GBA

has

been

designated

as

a

key

strategicplanning

priority

in

national

development

blueprint,with

significant

implications

for

nationalimplementation

of

innovation-driven

developmentandcommitmenttoreformandopening-up.The

Guangdong-Hong

Kong-Macao

Greater

Bay

Area(GBA)

is

composed

of

the

two

Special

AdministrativeRegions

of

Hong

Kong

and

Macao,

and

ninemunicipalities

in

Guangdong

province

(Guangzhou,Shenzhen,

Zhuhai,

Foshan,

Huizhou,

Dongguan,Zhongshan,

Jiangmen,

and

Zhaoqing),

as

shown

inChart

1.1.

The

GBA

has

witnessed

the

reform

andopening-upoftheMainlandeconomysincethelate1970s

and

supported

the

strong

economic

growth

inMainlandChinaformorethanfourdecades.Since

then,

a

series

of

policy

papers

have

been

issuedby

the

Central

People’s

Government

to

support

theeconomic

development

and

financial

integration

inthe

GBA.

The

promulgation

of

‘Outline

DevelopmentPlan

for

the

Guangdong-Hong

Kong-Macao

GreaterBayArea’inFebruary2019aimstopromotegreatercooperation

within

the

GBA

region.

It

confirms

andsupports

Hong

Kong’s

status

as

an

internationalInJuly2017,theNationalDevelopmentandReformCommission

and

the

governments

of

Guangdong,Hong

Kong,

and

Macao

signed

the

‘FrameworkAgreement

on

Deepening

Guangdong-Hong

Kong-Chart

1.1:

Map

of

the

GBAGUANGDONGZhaoqingGuangzhouHuizhouFoshanDongguanShenzhenZhongshanJiangmenHONGKONGZhuhaiMacauSource:

iStockphoto.1NationalDevelopmentandReformCommission,People’sGovernmentofGuangdongProvince,GovernmentoftheHongKongSpecialAdministrativeRegion

&Government

of

the

Macao

Special

Administrative

Region

(2017).8Cross-boundary

Payment

and

Settlement

Systems

in

the

Greater

Bay

AreaChapter

1:

Financial

Integration

in

the

Greater

Bay

Areafinancial

centre,

a

global

offshore

Renminbi

(RMB)business

hub,

and

an

international

asset

and

riskmanagementcentre.Thepromulgationof“Opinionon

Providing

Financial

Support

for

the

Developmentof

the

Greater

Bay

Area”

in

May

2020

supportspromoting

further

financial

liberalisation

andinnovation,

deepening

financial

cooperation

betweenthe

Mainland,

Hong

Kong

and

Macao,

and

elevatingthe

role

of

the

GBA

in

supporting

and

leading

thecountry’s

developmentandopeningup.Kong

plays

a

critical

role

in

supporting

the

developmentof

the

GBA,

and

it

serves

as

a

super-connectorbetween

the

Mainland

and

international

financialmarkets.

With

its

prudent

and

robust

financialregulatory

regime,

Hong

Kong’s

economy

has

beenclosely

connected

to

the

Mainland

development

overthe

past

four

decades.

As

the

Mainland

economycontinues

to

grow,Hong

Kong

has

fully

exploited

itsconsiderable

advantages

by

contributing

to

nationaldevelopment.

Going

forward,

there

is

great

potentialfor

Hong

Kong’sfinancial

services

industry,includingbanks,

asset

managers,

and

insurers,

to

furtherbenefit

from

vast

market

and

pilot

liberalisationinitiatives

while

servicing

the

burgeoning

economicdevelopmentwithintheGBA.Table

1.1

compares

the

GBA

to

other

established

bayareaswithglobaleconomicsignificance,namelytheSan

Francisco

Bay

Area,

the

New

York

MetropolitanArea,

and

the

TokyoBay

Area.

The

GBA

outnumbersthe

other

bay

areas

in

terms

of

both

land

area

andpopulation,

indicating

that

the

GBA

has

a

distinctadvantage

in

the

production

factors

that

are

essentialfor

supporting

economic

growth.

Moreover,

as

theGBA

is

ranked

third

in

terms

of

gross

domesticproduct

(GDP),

there

is

a

large

potential

for

economicdevelopmentintheregiongoingforward.1.2.

CROSS-BOUNDARYINVESTMENTSCHEMESAgainst

the

background

of

the

internationalisationof

the

Mainland

capital

markets,

a

series

of

cross-boundary2

investment

schemes

have

beenimplemented

between

Hong

Kong

and

MainlandChina.

These

schemes

provide

offshore

investorswith

access

to

investment

opportunities

in

MainlandChina

and

onshore

investors

with

access

tointernational

markets.Table

1.1:

Statistics

of

the

world’s

major

bayareasSanNew

YorkTokyoBay

AreaGBA

Francisco

MetropolitanBay

AreaAreaFrom

a

theoretical

standpoint,

these

schemes

increasethe

connectivity

of

financial

markets

and

offer

marketparticipants

additional

channels

to

manage

theirportfolios

and

meet

their

investment

needs.

They

alsoimprove

capital

allocation

efficiency,

which

benefitsboth

Hong

Kong

and

Mainland

China.

Through

theseinvestmentschemes,Mainlandinvestorscanbenefitfrom

Hong

Kong’s

critical

mass

of

liquidity,

productdiversity,

world-class

financial

services

and

competitivefinancial

infrastructure,

and

international

investorscan

capture

opportunities

in

the

vibrant

MainlandChina

markets

while

continuing

to

operate

using

theirfamiliar

legal

and

regulatory

frameworks,

marketpracticesandlanguages.3Land

area(squarekilometres)56,09817,88717,31236,898Population(million)86.7017.76219.26244.371GDP(US$

billion)1,668.8621,016.4221,809.3221,991.6434Sources:

The

Hong

Kong

Trade

Development

Council

and

HKIMR

staffcompilation.Note:12021

figure;22020

figure;32019

figure;

At

2021

market

prices4and

converted

using

the

yearly

average

exchange

rates.As

a

mature

and

leading

international

financial

centre,a

global

offshore

RMB

business

hub,

and

aninternational

asset

and

risk

management

centre,

Hong23Throughoutthisreport,‘Cross-boundary’activities(e.g.,investmentsandfinancialtransactions)referstoactivitiesconductedacrosstheboundariesofjurisdictions

within

the

GBA,

whereas

‘cross-border’

activities

refer

activities

conducted

across

country

borders.HKMA

(2020a).9Hong

Kong

Institute

for

Monetary

and

Financial

Research

•

March

2023Chapter

1:

Financial

Integration

in

the

Greater

Bay

AreaTable

1.2:

Timeline

of

cross-boundary

investment

schemesYear200220062011201420152016EventsQualifiedForeign

InstitutionalInvestor(QFII)QualifiedDomesticInstitutionalInvestor(QDII)RMBQualifiedForeign

InstitutionalInvestor(RQFII)Shanghai-HongKongStockConnectMainland-HongKongMutualRecognitionofFunds(MRF)ChinaInterbankBondMarketDirectShenzhen-HongKongStockConnectNorthboundTrading

undertheBondConnectQualifiedForeign

Investor201720202021Wealth

ManagementConnect(WMC)SouthboundTrading

undertheBondConnectETFConnect2022SwapConnect(announced)Source:

HKIMR

staff

compilation.The

initial

opening-up

of

the

Mainland

capital

marketsand

the

early

integration

between

Mainland

China

andHong

Kong’s

financial

services

industries

took

place

inthe

early

2000s,

with

the

introduction

of

the

QualifiedForeign

Institutional

Investor,

RMB

Qualified

ForeignInstitutional

Investor,

and

Qualified

DomesticInstitutional

Investor

schemes,

which

provided

qualifiedoffshore

and

onshore

financial

institutions

with

theopportunity

to

invest

in

onshore

and

offshore

financialmarkets,

respectively.

There

were

several

restrictionsregarding

investor

eligibility

and

quota

requirements.The

second

batch

of

schemes

which

was

launched

inmid

2010s

included

Stock

Connect,

NorthboundTrading

under

Bond

Connect,

and

the

Mainland-HongKong

Mutual

Recognition

of

Funds

(MRF)

and

ChinaInterbank

Bond

Market

Direct

schemes,

whichincreased

the

range

of

financia