Hong Kong Exchanges and Clearing (0388) announced on Tuesday that it has signed a Memorandum of Understanding with the CIPS, operator of China's Cross-border Interbank Payment System, to explore strategic cooperation in cross-border yuan business and to support the long-term development of Hong Kong's fixed income and currencies ecosystem.
Under the MOU, HKEX's clearing subsidiary, OTC Clearing Hong Kong, intends to apply to become a direct participant of CIPS and plans to submit its application materials before the end of 2026, and CIPS will provide guidance and training to support OTC Clear's application.
As a direct participant, OTC Clear will be able to conduct yuan fund settlements directly through CIPS, supporting more efficient cross-border yuan clearing and settlement for the OTC Clear market and its participants.
CIPS and HKEX will also deepen their cooperation in product and business development, sharing research and market expertise, and supporting the development of cross-border yuan services.
HKEX chief executive Bonnie Chan Yi-ting said that direct access to CIPS would enhance OTC Clear's settlement capabilities and lay the foundation for HKEX's broader fixed income and currency product and infrastructure development, further reinforcing Hong Kong's role as the world's leading offshore yuan centre.
