FINANCE

HKEX Clearing Unit Seeks Direct Access to China’s CIPS in Offshore Yuan Push

Published: Jul. 8, 2026 4:43 p.m. GMT+8

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The Hong Kong FIC and Bond Connect Summit is held on July 7. Photo: Li Zhihua/China News Service/VCG

The clearing subsidiary of Hong Kong Exchanges and Clearing Ltd. (HKEX) plans to apply to become a direct participant in China’s Cross-Border Interbank Payment System (CIPS), aiming to streamline transactions and boost the yuan’s global use.

Under a memorandum of understanding signed Tuesday in Hong Kong, HKEX’s OTC Clearing Hong Kong Ltd. (OTC Clear) will seek direct access to CIPS, the mainland Chinese clearing network operated by CIPS Co. Ltd. OTC Clear provides settlement services for over-the-counter derivatives.

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HKEX's OTC Clear plans to apply for direct CIPS participation to streamline cross-border RMB settlements.
Direct access enables more efficient yuan clearing and settlement, supporting the currency's global use.
As of June 2026, CIPS had 210 direct participants, covering over 5,200 banks in 191 countries.

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Who’s Who

Hong Kong Exchanges and Clearing Ltd.: Hong Kong Exchanges and Clearing Ltd.'s subsidiary, OTC Clear, plans to apply as a direct participant in China's Cross-Border Interbank Payment System (CIPS) to streamline transactions and boost yuan global use.

OTC Clearing Hong Kong Ltd.: OTC Clearing Hong Kong Ltd. (OTC Clear), a subsidiary of HKEX, plans to become a direct participant in China's Cross-Border Interbank Payment System (CIPS). This would enable direct RMB settlements for OTC derivatives, boosting cross-border clearing efficiency and the yuan's global use.

CIPS Co. Ltd.: CIPS Co. Ltd. operates China's Cross-Border Interbank Payment System (CIPS). As of June 2026, CIPS had 210 direct participants, serving over 5,200 banking institutions across 191 countries and regions, facilitating cross-border yuan clearing and settlement.

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What Happened When

2021：: Hong Kong Monetary Authority's Central Moneymarkets Unit became a direct participant in CIPS, enabling real-time and end-of-day settlement services for yuan bonds.