An aerial view of Kowloon, Hong Kong Special Administrative Region Photo: VCG

Hong Kong Exchanges and Clearing Limited (HKEX) has signed a Memorandum of Understanding with the CIPS Co, operator of China's Cross-border Interbank Payment System (CIPS) to explore strategic cooperation in cross-border renminbi (RMB) business and to support the long-term development of the city's fixed income and currencies ecosystem, HKEX announced on Tuesday via its official website. 

A series of recent moves in Hong Kong's financial markets, ranging from cross-border yuan payment clearing cooperation to the launch of a central gold clearing system, signal deeper financial integration and connectivity. 

Industry observers say Hong Kong is strengthening its role as a "super connector" between China and global investors by improving financial infrastructure, expanding yuan-denominated assets and enhancing market links.

According to the announcement, CIPS Co will provide guidance and training to support Over-the-Counter (OTC) Clear's application. As a direct participant, OTC Clear will be able to conduct RMB fund settlements directly through CIPS, supporting more efficient cross-border RMB clearing and settlement for the OTC Clear market and its participants.
 
Under the supervision of the People's Bank of China, CIPS is the primary channel for cross-border RMB payments and clearing. As of June 2026, CIPS had 210 direct participants, with its operations covering more than 5,200 banking institutions in 191 countries and regions, according to HKEX.

Notably, HKEX is also considering the launch of yuan-denominated gold futures contracts to further diversify gold investment products and enhance the city's role as an international gold trading hub.

Concurrently, the HKEX is exploring the development of a brand-new RMB gold futures contract with delivery support from the Shanghai Gold Exchange, ensuring Hong Kong's expanding physical market is fully supported by robust, world-class risk-management tools, according to HKSAR government's Tuesday announcement.

Meanwhile, the Chinese mainland has continued to introduce supportive measures to inject further momentum into Hong Kong's financial markets.

Pan Gongsheng, governor of the People's Bank of China, said at a forum on Tuesday that the central bank will support Hong Kong in launching offshore yuan-denominated government bond futures and developing itself into a comprehensive financial trading platform, according to Shanghai Securities News.

The move aims to further strengthen, consolidate and enhance Hong Kong's position as an international financial center, according to the governor.

As a key step to deepen cross-border financial connectivity, Pan said the annual net investment quota under the Southbound Trading under China's Bond Connect program will be increased from 500 billion yuan to 800 billion yuan, Shanghai Securities News reported. 

The scheme will also expand eligible products by allowing Southbound Bond Connect bonds to be used in repurchase transactions, while extending coverage to Hong Kong dollar- and yuan-denominated bond products and the Macao bond market, the report said.

In a media briefing later on Tuesday, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man said the increase would allow more institutional investors on the mainland to buy into the city's bond products, according to South China Morning Post's Tuesday report.

"[This] will promote the development of the fixed-income market in Hong Kong and further strengthen the city as an international financial center," the executive said, according to the report.