China’s 15th Five-Year Plan underscores a clear vision to expand the renminbi’s (RMB) global footprint, with the Hong Kong Special Administrative Region (SAR) poised to play a pivotal role. The Cross-Border Interbank Payment System (CIPS), a cornerstone of this strategy, has seen exponential growth since its inception, now linking over 1,700 institutions across 190 countries and regions. As of the first half of 2025, RMB settlement in goods trade reached 28.1%, reflecting its rising prominence in global commerce.
Developed by the People’s Bank of China, CIPS processed 175 trillion yuan ($24.7 trillion) in cross-border transactions in 2024 alone – a 43% year-on-year increase. This growth aligns with China’s broader financial innovations, including the International Digital RMB Operations Center and multilateral central bank digital currency initiatives, which aim to reduce reliance on intermediary banks and enhance transaction efficiency.
Bruce Pang, AsiaGlobal Fellow at the University of Hong Kong’s Asia Global Institute, notes: “Hong Kong’s robust financial infrastructure, coupled with its unique position as a global hub, positions it to drive the next phase of RMB integration. The SAR’s expertise in cross-border connectivity and risk management will be critical as China advances its capital account liberalization.”
While CIPS still trails SWIFT in global reach, its rapid expansion signals a strategic shift toward diversifying international payment systems. For investors and businesses, Hong Kong’s evolving role offers new opportunities to leverage RMB-denominated assets and streamline cross-border operations in Asia’s dynamic economic landscape.
