How to pay Chinese suppliers from Hong Kong
A Hong Kong company pays a mainland Chinese supplier by sending US dollars or renminbi from its own business account to the supplier's company account, by SWIFT or through Hong Kong's renminbi clearing system. Hong Kong places no exchange controls on the payment, so the checks that matter are the supplier's bank in China and Hong Kong's import declaration rules. This guide covers the currency choice, the payment routes, published bank charges, the documents and the risks of paying through agents.
- Hong Kong has no exchange controls on paying a supplier abroad, and the HKMA removed the RMB20,000 daily conversion limit for Hong Kong residents from 17 November 2014.
- Hong Kong runs separate real-time CHATS systems for US dollars, launched in August 2000, and renminbi, upgraded in June 2007 with Bank of China (Hong Kong) as clearing bank.
- Goods imported into Hong Kong need an import declaration lodged with Customs within 14 days, and the declaration charge has been capped at HK$200 per declaration since 1 August 2018.
- HSBC Hong Kong's August 2026 tariff lists HK$125 for an online outward telegraphic transfer, or HK$100 to HSBC Group offices in mainland China, plus a HK$280 option to pay all other banks' fees on USD transfers to the mainland.
- China's foreign exchange rules expect the payer and the beneficiary to be the parties to the contract, so a payment from an agent or a personal account can be queried by the supplier's bank.
- Operating a remittance or money changing service in Hong Kong without a license from the Customs and Excise Department carries a maximum fine of HK$100,000 and six months' imprisonment.
How to pay a Chinese supplier from Hong Kong: the short answer
A Hong Kong company pays a supplier in mainland China in three stages. It agrees the currency and payment terms, it pays by bank transfer from an account in the company's own name to the supplier's company account, and it declares the goods to Hong Kong Customs when they arrive. The payment is usually a SWIFT transfer in US dollars, or a renminbi (RMB) transfer through Hong Kong's renminbi clearing system. SWIFT is the international messaging network banks use for cross-border payments, and each bank has an 8 or 11 character SWIFT code.
The usual sequence for an order is:
- Agree the price, the currency, the payment terms and the Incoterm with the supplier, and get a proforma invoice. A proforma invoice is the supplier's priced quotation for the order. An Incoterm is a standard trade term, such as FOB or EXW, that sets who pays freight and insurance.
- Check that the beneficiary named on the invoice is the supplier's company, not a person, and that the bank details match its business license.
- Pay the deposit by SWIFT or RMB transfer, quoting the proforma invoice number in the payment reference.
- Pay the balance when the supplier sends a copy of the bill of lading, or pay through a documentary credit or a documentary collection.
- Lodge the import declaration with Hong Kong Customs within 14 days of the goods arriving, unless the goods are exempt.
Many Hong Kong companies are themselves trading companies that buy from mainland factories and sell to buyers abroad. This guide is written for them as well as for Hong Kong importers. For the supplier's side of the transaction in general, see our guide on how to pay suppliers in China.
What Hong Kong requires: declarations, not exchange controls
Hong Kong does not ask a company to register an import with its bank before paying, and it does not ration foreign currency. A Hong Kong company can hold US dollars, renminbi or Hong Kong dollars and pay a supplier from whichever balance it chooses. The Hong Kong Monetary Authority (HKMA), Hong Kong's central banking institution, removed the last daily limit on converting Hong Kong dollars into renminbi for Hong Kong residents with effect from 17 November 2014. Before that date, residents could convert up to RMB20,000 a day.
The rules that do apply sit with the Customs and Excise Department (C&ED).
Import declarations
Anyone who imports goods that are not exempt must lodge an accurate and complete import declaration within 14 days of the goods arriving. Declarations are lodged electronically through one of three government-appointed service providers: Brio Electronic Commerce Limited, Global e-Trading Services Limited and Tradelink Electronic Commerce Limited. Since 1 August 2018 the declaration charge on each import and export declaration has been capped at HK$200. A late declaration attracts a penalty, and a knowingly or recklessly inaccurate declaration can be prosecuted.
Money service licensing
Under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, anyone who operates a remittance or money changing service in Hong Kong needs a license from C&ED. This matters when an agent offers to pay a supplier on your behalf, as the section on informal routes explains.
| Rule | What it says |
|---|---|
| Exchange controls on paying suppliers | None; a company may pay from USD, RMB or HKD balances |
| RMB conversion by Hong Kong residents | Daily limit of RMB20,000 removed from 17 November 2014 |
| Import declaration | Lodged electronically within 14 days of import, unless the goods are exempt |
| Declaration charge | Capped at HK$200 per declaration from 1 August 2018 |
| Late lodgement, value up to HK$20,000 | HK$20, HK$40 or HK$100, rising with the delay |
| Late lodgement, value over HK$20,000 | HK$40, HK$80 or HK$200, rising with the delay |
| Short-paid declaration charge | Penalty of up to 20 times the amount underpaid, capped at HK$10,000 per declaration |
| Remittance and money changing services | License from C&ED required; operating without one carries a maximum fine of HK$100,000 and six months' imprisonment |
Sources: HKMA, removal of RMB conversion limit for Hong Kong residents (12 November 2014); Customs and Excise Department, import and export declaration types and declaration charges; Customs and Excise Department press release of 4 October 2018. As published on 29 October 2026.
USD or RMB: choosing the payment currency
Most mainland factories quote in US dollars, and a Hong Kong company can pay in dollars or in renminbi with equal ease. The Hong Kong dollar is linked to the US dollar, so a company that holds dollars carries little exchange rate risk against its home currency. The renminbi is not linked, so an RMB price moves against both.
Renminbi comes in two forms. CNY is the renminbi traded onshore in mainland China. CNH is the renminbi traded offshore, mainly in Hong Kong. A Hong Kong account holds CNH, and when it pays a mainland account the supplier receives renminbi in China.
How Hong Kong moves each currency
Hong Kong runs a separate CHATS system for each of four currencies. CHATS is the Clearing House Automated Transfer System, which settles each payment between Hong Kong banks individually and in real time. RMB CHATS was upgraded in June 2007, and Bank of China (Hong Kong) Limited acts as its clearing bank. The clearing bank holds a settlement account with the People's Bank of China and is a member of China's National Advanced Payment System (CNAPS), the mainland's payment system, which links Hong Kong renminbi to mainland accounts. FPS, the Faster Payment System, carries Hong Kong dollar and renminbi payments between local accounts.
| Point | Pay in USD | Pay in RMB |
|---|---|---|
| What most suppliers quote | USD is the usual invoice currency for export orders | Some suppliers accept or prefer RMB; ask |
| Exchange rate risk for a Hong Kong company | Low, because HKD is linked to USD | RMB moves against HKD and USD |
| Local system in Hong Kong | USD CHATS, launched in August 2000, settled by HSBC | RMB CHATS, with Bank of China (Hong Kong) as clearing bank; FPS for local RMB payments |
| Payment to a mainland account | SWIFT transfer in USD | RMB transfer from Hong Kong to the mainland account |
| Conversion | None if you hold USD from sales | Convert HKD or USD to RMB at your bank's rate, or hold RMB |
Sources: HKMA, Payment Systems; HSBC Hong Kong, Commercial Banking complete tariffs, August 2026. As published on 29 October 2026.
Paying in renminbi removes the supplier's own conversion, and some suppliers price an RMB order lower for that reason. It adds a conversion on your side unless you already hold renminbi. Compare the RMB price at your bank's rate with the USD price before you choose. A trading company that sells in dollars and buys in dollars avoids conversion on both legs.
How the money reaches the supplier
A mainland supplier gives you one of several sets of bank details. The beneficiary should always be the company named on the proforma invoice and the contract.
| Supplier asks for | How you pay from Hong Kong | What to check |
|---|---|---|
| USD to its Hong Kong company account | USD CHATS transfer between Hong Kong banks, in real time on bank business days | The Hong Kong company is the seller on the invoice |
| HKD or RMB to a Hong Kong account | FPS or CHATS in that currency | Same check; FPS suits smaller amounts |
| USD to a mainland account | SWIFT transfer in USD | The supplier's bank checks the contract and invoice before it credits the funds |
| RMB to a mainland account | RMB transfer from your Hong Kong account to the mainland account | Account name, bank name and branch exactly as on the supplier's records |
| Documentary credit | Your bank issues the credit; the supplier is paid against documents | Documents must match the credit exactly |
Routes as described in this guide; local systems from HKMA, Payment Systems; supplier-side checks from PNC Bank's summary of China's goods trade foreign exchange rules. As published on 29 October 2026.
What the supplier's bank checks
China manages foreign exchange through the State Administration of Foreign Exchange (SAFE). As summarized by PNC Bank, a mainland company must be on SAFE's list of companies that handle goods trade foreign exchange, and banks cannot process goods trade foreign exchange for companies that are not on it. The supplier's bank checks each receipt for a genuine trade background and may ask for the contract, the invoice, the customs declaration and transport documents. The same summary states that the remitter and the beneficiary must be the parties to the contract, the importer and the exporter. A payment from a company that is not on the contract can be held while the supplier's bank asks questions.
SAFE matches the money a company receives against customs records of what it shipped. A supplier that cannot match your payment to an export declaration can be marked by its bank, so suppliers have their own reason to insist on a clean payment from the buyer named on the contract.
Deposit, balance and payment terms
Many factories ask for a deposit when the order is confirmed and the balance before the goods ship, against a copy of the bill of lading. A bill of lading is the document the shipping line issues when it receives the goods. The payment term decides how much risk you carry while the goods are made.
| Term | How it works | Published HSBC charge |
|---|---|---|
| Deposit and balance by transfer | Two transfers against one order | Outward transfer charge on each payment |
| Documentary credit (DC) | Your bank promises to pay when the supplier presents documents that comply with the credit | Opening commission 0.25% per six months of validity, minimum HK$500 |
| DC amendment | Changes to dates, documents or terms | HK$600, or the opening commission if the amount rises or validity extends beyond six months |
| Documentary collection | Banks release the shipping documents to you against payment or acceptance | Collection bills commission 0.125%, minimum HK$550 |
| Deferred payment or acceptance | You pay at a fixed date after the documents arrive | 0.0625% per month, minimum HK$500 |
| Discrepant documents | Documents do not match the credit | Discrepancy fee HK$700 |
Source: HSBC Hong Kong, Commercial Banking complete tariffs, August 2026, section G1 (Import). As published on 29 October 2026. Other banks set their own charges.
A documentary credit, also called a letter of credit, protects you against paying for goods that were never shipped, but it does not check quality. A documentary collection sends the shipping documents through the banks, and you receive them only when you pay or accept a bill of exchange; it carries no bank promise to the supplier. A supplier that has not traded with you may ask for a credit on the first order and accept deposit and balance on later orders. Book a pre-shipment inspection before you release the balance on a large order.
What it costs: published bank charges
Each Hong Kong bank publishes its own tariff. The table shows HSBC Hong Kong's charges for the payments in this guide, as an example of what to budget for on each order.
| Item | Published charge |
|---|---|
| Outward telegraphic transfer online, to HSBC Group offices in mainland China | HK$100 |
| Outward telegraphic transfer online, to all other banks | HK$125 |
| Outward telegraphic transfer at a branch on the bank's standard form | HK$480 |
| Option to pay all other banks' charges on a USD transfer to mainland China | HK$280, covering other banks' fees up to HK$400 |
| Extra charge for remote currencies | HK$200 |
| Outward RTGS (CHATS) payment to another Hong Kong bank, online | HK$55 |
| Outward HKD or RMB FPS payment, online, up to 1 million | HK$5 |
| Amendment, enquiry or return of a telegraphic transfer | HK$250 plus other banks' charges |
Source: HSBC Hong Kong, Commercial Banking complete tariffs, August 2026, section E (Payment Services), as published on 29 October 2026. Correspondent and beneficiary bank charges are extra unless the full-amount option is chosen.
A telegraphic transfer is a bank's term for an outgoing wire, sent over SWIFT. RTGS means real-time gross settlement, which is how CHATS settles each payment on its own.
Charge codes and short payments
Every SWIFT payment carries a charge code. OUR means you pay all transfer fees and the supplier receives the full invoice amount. SHA shares the fees, so intermediary banks can deduct theirs from the amount on the way. BEN puts all fees on the supplier. On a USD payment to the mainland the dollars pass through at least one correspondent bank, a bank that holds accounts for other banks and settles payments in its currency. A payment that arrives short on SHA terms delays production or shipment while the supplier asks for the difference. HSBC's full-amount option is one way to avoid that; agreeing in the contract who bears bank charges is the other.
On a US$50,000 order paid as a US$15,000 deposit and a US$35,000 balance, the fixed charges above are small against the order. The cost that varies most is conversion. If you pay in renminbi from Hong Kong dollars, ask the bank for its rate before you confirm and compare it with the US dollar price.
Documents that tie the payment to the goods
Your bank, Hong Kong Customs, the supplier's bank and your auditors each match the same facts: the supplier's name, the invoice number, the goods and the value. Keep them identical across every document.
| Stage | Document | Issued by |
|---|---|---|
| Before ordering | Proforma invoice and sales contract naming the supplier's company, its bank account and the payment terms | Supplier and buyer |
| Each payment | Payment instruction quoting the invoice number; SWIFT or CHATS confirmation | Buyer and bank |
| Documentary credit | Credit application, the credit itself and any amendments | Buyer and bank |
| After shipment | Bill of lading or air waybill, commercial invoice, packing list | Carrier and supplier |
| On arrival | Import declaration, lodged within 14 days | Importer or its agent, through a service provider |
| Year end | Payment records matched to invoices for the audit | Buyer |
Sources: Customs and Excise Department, import and export declaration types; PNC Bank, China's goods trade foreign exchange rules. Typical sequence; requirements vary by bank and product. As published on 29 October 2026.
If the supplier changes its bank details, treat the change as unverified until you confirm it by telephone on a number you already hold. Payment fraud often starts with an email that looks like the supplier's and asks for payment to a new account.
Agents, personal accounts and stablecoins: what goes wrong
Some buyers pay a sourcing agent in Hong Kong, who then pays the factory, or pay into a personal account or a payment app that a factory employee provides. The facts below are what a Hong Kong company should weigh before using these routes.
- Remittance needs a license. An agent who takes your money and pays a supplier for a fee may be operating a remittance service. In Hong Kong that requires a C&ED license, and operating without one carries a maximum fine of HK$100,000 and six months' imprisonment.
- The supplier's bank may query it. China's rules expect the payer and the beneficiary to be the parties to the contract. A payment from an agent, or to a person rather than the supplier's company, does not match the contract.
- Your own records do not match. Your invoice is from the factory, but your bank statement shows a payment to someone else. Auditors and tax advisers will ask why.
- There is no recourse. A SWIFT or CHATS payment from your account to the supplier's company account can be traced through the banks. Money paid to a personal account is hard to recover if the goods do not arrive.
- Stablecoins carry risk on the China side. In November 2025 the People's Bank of China reaffirmed that virtual currency business activities are illegal in mainland China and said stablecoins carry risks including illegal cross-border transfers, as reported by The Block. A mainland supplier that receives USDT is exposed to that position.
Hong Kong regulates stablecoin issuers under its own Stablecoins Ordinance, covered in our guide to a USD business account in Hong Kong. Paying a mainland supplier is a different question, and a bank transfer to the supplier's company account is the route that both sides' banks and regulators expect.
Where Helm fits, and a checklist
Helm is a financial technology company, not a bank. Accounts are held with regulated partner institutions. A Helm account gives a Hong Kong company USD account details in its own name, with a US routing and account number that receives ACH, Fedwire and SWIFT payments, plus EUR and GBP details for buyers in Europe and the UK.
- Pay suppliers in USD. Send international payments by SWIFT from your company's own account to the supplier's USD account in Hong Kong or mainland China, with the rate, fee and expected arrival shown before you send.
- Collect and pay in one currency. A trading company that collects dollars from US buyers by ACH can pay its suppliers from the same dollar balance without converting.
- Finance the balance. Trade finance, such as supplier finance and working capital, is arranged case by case.
Each account has a named account manager, and review questions are answered in writing within one business day. Helm agrees pricing with each business in writing before the account opens, and shows the rate, the fee and the expected arrival before you confirm each payment. Keep a Hong Kong bank account if you need CHATS, FPS or Hong Kong dollar costs.
Checklist
- Agree the currency, the deposit and the trigger for the balance in writing.
- Check that the beneficiary is the supplier's company and matches its business license.
- Confirm any change of bank details by telephone on a number you already hold.
- Agree who pays bank charges, and use OUR or a full-amount option if the supplier must receive the full amount.
- Use a documentary credit or an inspection before paying the balance on a large first order.
- Lodge the import declaration within 14 days of the goods arriving.
- Keep each payment confirmation with its invoice, bill of lading and declaration.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
How do I pay a Chinese supplier from Hong Kong?
Send US dollars by SWIFT, or renminbi through your bank, from your company's Hong Kong account to the supplier's company account, quoting the invoice number. If the supplier has a Hong Kong account, pay it locally by CHATS or FPS. Pay the balance against a copy of the bill of lading, or use a documentary credit.
Should a Hong Kong company pay Chinese suppliers in USD or RMB?
Most mainland suppliers quote in US dollars, and the Hong Kong dollar's link to the US dollar keeps a dollar payment low risk for a Hong Kong company. Paying in renminbi removes the supplier's conversion, and some suppliers price RMB orders lower. Compare the RMB price at your bank's rate with the USD price before you choose.
Is there a limit on converting HKD to RMB in Hong Kong?
No. The HKMA removed the RMB20,000 daily conversion limit for Hong Kong residents with effect from 17 November 2014. Your bank sets its own exchange rate for each conversion.
What is the difference between CNY and CNH?
CNY is the renminbi traded onshore in mainland China, and CNH is the renminbi traded offshore, mainly in Hong Kong. A Hong Kong account holds CNH, and the supplier receives renminbi in its mainland account when you pay.
How much does HSBC charge to send money to mainland China?
HSBC Hong Kong's August 2026 tariff lists HK$100 for an online outward telegraphic transfer to HSBC Group offices in mainland China and HK$125 to all other banks. An option to pay all other banks' charges on a USD transfer to the mainland costs HK$280 and covers their fees up to HK$400.
Do I need to declare goods imported into Hong Kong from China?
Yes, unless the goods are exempt. An import declaration must be lodged electronically within 14 days of the goods arriving, through one of three government-appointed service providers. The declaration charge has been capped at HK$200 per declaration since 1 August 2018.
Why did my supplier's bank in China hold my payment?
Mainland banks check each foreign exchange receipt for a genuine trade background and may ask the supplier for the contract, invoice and customs declaration. China's rules expect the payer and the beneficiary to be the contract parties, so a payment from a different company or to a different account is often queried.
Can I pay a Chinese supplier through an agent in Hong Kong?
An agent that takes money and pays suppliers for a fee may be running a remittance service, which needs a license from the Customs and Excise Department. The payment also does not come from the contract party, so the supplier's bank may query it. Paying the supplier's company account directly avoids both problems.
Can I pay a Chinese supplier in USDT from Hong Kong?
In November 2025 the People's Bank of China reaffirmed that virtual currency business activities are illegal in mainland China and warned that stablecoins carry risks including illegal cross-border transfers. A bank transfer to the supplier's company account is the route both sides' banks expect.
References
- Hong Kong Monetary Authority: Payment Systems (HKD, USD, Euro and RMB CHATS)
- Hong Kong Monetary Authority: Removal of RMB conversion limit for Hong Kong residents (12 November 2014)
- Customs and Excise Department: Import and export declaration types and lodgement
- Customs and Excise Department: Declaration charges
- Customs and Excise Department: Hong Kong Customs combats unlicensed money service business (4 October 2018)
- HSBC Hong Kong: Commercial Banking complete tariffs, August 2026
- PNC Bank: Navigating China's regulations on foreign exchange for goods trade
- The Block: China's central bank reaffirms crypto ban, flags stablecoin risks (29 November 2025)
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.