Frequently Asked Questions 
28/09/2010 
 
Part 5 : RMB Designated Bank Account for CCASS Money Settlement
5.1 Is it mandatory for CCASS Participants to set up a designated bank account for transactions in RMB?
   

It is not mandatory for CCASS Participants to set up a designated bank account for RMB transactions.  However, they are advised to do so in case they need to handle RMB denominated transactions for their clients.   
 

5.2

Why do CCASS Participants need to set up a designated bank account for RMB and what are the advantages?  Will there be any issues if a CCASS Participant does not set up a designated bank account at this moment?
 

CCASS Participants are required to set up a designated bank account for RMB if they are going to process CCASS transactions denominated in RMB electronically (e.g. receiving dividend payments in RMB if offered by issuers).  Otherwise, HKSCC can only arrange for money settlement of RMB denominated transactions via cheque payment or such other means as considered appropriate by HKSCC.   Therefore, Participants are strongly advised to set up the RMB bank accounts as soon as possible to avoid delay in providing RMB services to their clients.   
 
A Participant can choose to set up a designated bank account for RMB later when it needs to process CCASS money transactions denominated in RMB.  However, Participants should note that lead time is involved in setting up a designated bank account for RMB.  They will not be able to handle money settlement of RMB denominated transactions electronically if they do not have a designated bank account for RMB.   Therefore, CCASS Participants are strongly advised to set up a designated bank account for RMB as soon as possible to avoid delay in providing RMB services to their clients. 
 

5.3 Are there any charges for setting up the designated bank account for RMB?  How long does it take?
 

HKSCC does not charge any fees for setting up CCASS money settlement service in RMB.  However, CCASS Participants have to contact their Designated Banks to find out the costs, time and procedures required to set up a RMB bank account.  CCASS Participants are also required to submit a “Renminbi Direct Debit Authorisation Form” to HKSCC.
     
It normally takes about three weeks for HKSCC to complete the set-up process depending on when HKSCC receives confirmation from the Participant’s Designated Bank for RMB transactions and HKSCC’s RMB Agent Bank.
 

5.4 Where can CCASS Participants find the list of Designated Banks that provide RMB services?
   
(a)

For CCASS Participants other than Investor Participants, the bank list is available on HKEx website at: http://www.hkex.com.hk/eng/market/clr/secclr/clrarng_hkscc/ClrArrangeHKSCCPart.htm
 

(b)

For Investor Participants, the bank list is attached to the ''Renminbi Direct Debit Authorisation Form'', which is available on HKEx website at http://www.hkex.com.hk/eng/prod/clr/sec_clrsett/ipacctsvc/formsdownload.htm or through the Forms Download in the CCASS Internet System.
   

5.5

Which form should CCASS Participants submit to HKSCC to set up the account and from where can CCASS Participants download the form?
    

(a)

CCASS Participants other than Investor Participants are required to submit two forms for RMB money settlement service in CCASS: (1) ''Non-Investor Participant Setting Up of Renminbi Designated Bank Account Form'' and (2) ''Non-Investor Participant Renminbi Debit Authorisations and Authorisation to Disclose Information Form'' (DDA).  These forms are available at: http://www.hkex.com.hk/eng/market/clr/secclr/forms_hkscc/Formshksccpart.htm.  
 

(b)

Investor Participants have to submit: (1) ''Investor Participant Setting Up of Renminbi Designated Bank Account Form'' and (2) ''Investor Participant Renminbi Debit Authorisations and Authorisation to Disclose Information Form'' (DDA).  These forms are available at: http://www.hkex.com.hk/eng/prod/clr/sec_clrsett/ipacctsvc/formsdownload.htm and Forms Download in the CCASS Internet System.  However, Individual Investor Participants should note that only Hong Kong residents can open RMB bank accounts in Hong Kong for the time being.   
   

5.6 What are the CCASS admission criteria for Designated Banks for RMB?
   

Existing CCASS Designated Banks for HKD/USD should complete and return the ''Undertaking(s) for Renminbi'' together with a certified true copy of the board resolution authorising the execution of the Undertaking(s) and Questionnaire to HKSCC.  In addition, a testing between HKICL and the Designated Bank is required if the Designated Bank selects to receive the RMB reports from HKICL in electronic file/tape form.  HKICL issued a circular to its member banks on 12 August 2010 about the interface test arrangement.   For details, please contact HKICL.

If a bank is not yet a CCASS Designated Bank, it should contact HKEx’s Cash Market – Participant Services (CM-PS) team and submit the prescribed application form.  Banks which are interested in providing RMB money settlement service are also required to execute the Undertaking as mentioned in the above paragraph and do interface testing to receive the RMB reports from HKICL in electronic file/tape form.  It may take four weeks to complete the application process.  For details, please refer to Section 14.2.3 of the CCASS Operational Procedures or call CM-PS at 2840-3626.