Bank of China: Leading Cross-Border Banking and Innovation

Bank of China (Hong Kong) Ltd (BoC HK) Envisions Greater Use of Renminbi in Cross-Border Deals.

Bank of China (Hong Kong) Limited, the second-largest bank in Hong Kong by assets, anticipates a rise in the use of the renminbi (RMB) for cross-border transactions. The bank plans to expand RMB-related services next year, driven by growing demand among Hong Kong investors and businesses engaged in cross-border activities.

As a subsidiary of the state-owned Bank of China, BoC HK is accelerating efforts to strengthen its position in Hong Kong’s personal banking sector. The bank aims to capitalize on opportunities in cross-border banking, leveraging Hong Kong’s role as a key financial gateway to Mainland China.

Key initiatives, such as Stock Connect and Bond Connect, continue to solidify Hong Kong’s role in bridging the two markets. These programs enable investors in Hong Kong and Mainland China to trade and settle listed shares and bonds seamlessly via their respective exchanges.

Additionally, the Mainland China Instant Payment System, set to launch a pilot in June 2025, will further simplify and expedite cross-border transactions. This complements the Hong Kong Monetary Authority’s (HKMA) plans to roll out an instant payment system connecting the two regions, making cross-border banking faster and more efficient.

The growing demand for cross-border financial services is evident in the increasing popularity of features like remote account opening for Mainland customers. These services allow individuals to set up accounts in Hong Kong without visiting a branch, a convenience that has been well-received.

To stay competitive, banks are enhancing their mobile apps and integrating Application Programming Interfaces (APIs) with platforms like e-commerce shops, property developers, and stock trading applications. These partnerships, combined with advancements in artificial intelligence (AI) and blockchain technology, are transforming personal banking. Distributed ledger technology, in particular, is improving the security and efficiency of financial transactions.

BoC HK has been proactive in adopting digital solutions. It has launched initiatives leveraging blockchain and streamlined account management processes, with remote banking becoming a cornerstone of its strategy. Notably, BoC HK was the first bank to introduce remote account opening, eliminating the need for customers to visit branches.