BEIJING - Networks of bank cards using China's yuan currency will soon be linked between Hong Kong and the Chinese mainland, said the China Unionpay Co. Ltd. (CUP)
According to a report in The People's Daily newspaper, CUP is speeding up the work to enable cards in yuan issued on the Chinese mainland to be used in Hong Kong and vice versa so that residents from the Chinese mainland can shop with CUP bank cards and draw money from ATMs with CUP signs in Hong Kong instead of carrying large amounts of cash with them and going to banks in person to exchange yuan to Hong Kong dollars.
Card holders also will be able to use CUP cards issued in Hong Kong for shopping and withdrawing money from some 54,000 CUP ATMs in the Chinese mainland.
CUP was founded last March as the only national payment network used by a number of Chinese banks, according to the People's Daily.
The People's Bank of China (PBOC), the central bank, recently signed an agreement with the Hong Kong Monetary Authority to provide settlement arrangements for Hong Kong banks to conduct yuan business.
According to the scheme, Chinese mainland residents can use bank cards and credit cards in yuan issued by mainland banks for spending in Hong Kong. Hong Kong banks or their subsidiaries may also issue yuan bank cards and credit cards to residents of Hong Kong for use on the Chinese mainland.
