Bank of China (Hong Kong) Limited (BOCHK) said Monday that it has sent a letter to all licensed banks in Hong Kong to invite them to become participating banks of Reminbi (RMB) clearing services, enabling them to provide local personal RMB services.

BOCHK said the licensed banks are requested to indicate their interest in participating in RMB clearing services on or before Jan. 8, 2004. Upon receipt of their "Indication of Interest," BOCHK will enter into s Settlement Agreement with the participating banks, with briefings on the details of the clearing services to be arranged accordingly.

The People's Bank of China (PBOC) and BOCHK signed the Authorization Letter on the Renminbi Clearing Bank on Dec. 31, 2003.

BOCHK will continue to discuss with PBOC and other relevant authorities and institutions on the details of implementing RMB clearing services and conducts all the necessary technical tests.     

With the cooperation of all the parties concerned, BOCHK would try its best endeavors to launch at the earliest possible time a RMB clearing services system in Hong Kong and ensure its smooth and effective operation.

BOCHK, a listed commercial bank with a solid base and a good reputation, enjoys various unique edges in RMB business.

These include a good tack record of operating RMB business, undertaking a role of foreign currency notes delivery between Hong Kong and the Chinese mainland for years, experiencing in being an agent bank in handling cross-border clearing, possession of the relevant advanced system coupled with strong contingency backup capacities, extensive connection in the Chinese mainland, a broad branch network in Hong Kong and the familiarity with the financial policies and regulations of both places.

BOCHK believed that all these help lay down a solid foundation for BOCHK to act as RMB Clearing Bank and to provide quality RMB service in the near future.
 
(China Daily January 7, 2004)