Standard Chartered Hong Kong has become the first foreign bank that is qualified as a direct participant of the cross-border interbank payment system (CIPS) outside mainland China.

The bank has been an indirect participant of CIPS since 2015, while Standard Chartered China became a direct participant of CIPS in the onshore market among the first batch of foreign banks in the same year. In 2021, Standard Chartered China processed the highest volume of transactions in CIPS and acquired the highest number of indirect participants among the foreign banks.

CIPS is the global clearing platform for real-time renminbi (RMB) settlement that connects mainland China with offshore RMB centres and markets covering all major time zones across the globe. As a direct participant of CIPS, Standard Chartered Hong Kong will be able to provide clients with more efficient and secure execution services for their cross-border RMB transactions, and to clear RMB payments in extended operating hours.

“While China continues to be a major trading partner of many countries across the globe, Hong Kong, as the largest offshore RMB centre, is well-positioned to facilitate the cross-border RMB trade settlement,” says Benjamin Hung, CEO for Asia at Standard Chartered. “[Our participation] is another major milestone in supporting the internationalisation of RMB and promoting Hong Kong as a global offshore RMB business hub.”