Core Viewpoint - The ongoing efforts to establish a cross-border payment system between mainland China and Hong Kong are progressing, with initial services expected to launch mid-2025, focusing on personal remittances before expanding to merchant payments [2][7]. Group 1: Payment System Development - The People's Bank of China and the Hong Kong Monetary Authority are actively promoting the interconnection of the Internet Banking Payment System (IBPS) and the Faster Payment System (FPS) [2][3]. - The FPS in Hong Kong has seen significant growth, with 16% year-on-year increase in registered users, reaching 16 million by January 2025, and an average daily transaction volume of 148 billion HKD, up 27% year-on-year [3][5]. Group 2: Cross-Border Remittance Challenges - High failure rates for remittances from mainland residents to Hong Kong have been reported, with some banks indicating a 70% failure rate for first-time overseas remittances [4][8]. - The initial phase of the cross-border payment system will primarily facilitate person-to-person transfers, with plans to gradually expand to include merchant payments [8][9]. Group 3: Regulatory Framework and Future Prospects - The regulatory framework includes annual and daily limits for Hong Kong residents sending money to mainland China, with a total annual limit of 200,000 HKD and a daily limit of 10,000 HKD [9]. - Future expansions may consider connecting the interconnection system to other regions, enhancing Hong Kong's position as an offshore RMB payment settlement center and potentially linking with ASEAN and Middle Eastern markets [10].