Hong Kong Exchanges and Clearing (HKG:0388) signed an MoU with CIPS, the operator of China's Cross-border Interbank Payment System, according to a Tuesday release by HKEX.
Under the MoU, the parties will cooperate in the cross-border Renminbi business, support the long-term development of Hong Kong's fixed income and currencies ecosystem, and collaborate on product and business development.
HKEX's clearing subsidiary, OTC Clearing Hong Kong, plans to apply to become a direct participant of CIPS before end-2026, in order to conduct RMB fund settlements directly through CIPS.
This will enable efficiency in cross-border RMB clearing and settlement for the OTC Clear market and its participants.
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