Hong Kong Retirees Gain Direct Yuan Annuity Payments in Mainland China

Hong Kong annuity payments China access has improved after HKMC Annuity introduced direct monthly yuan payments for eligible retirees living in mainland China.

The company, a subsidiary of Hong Kong Mortgage Corporation, will use Payment Connect to transfer guaranteed annuity income directly into qualifying mainland bank accounts.

Its servicing bank will convert Hong Kong dollar-denominated annuity payments into yuan before sending them through the cross-border system, which connects mainland China’s Internet Banking Payment System with Hong Kong’s Faster Payment System.

The final yuan amount received will depend on the servicing bank’s prevailing exchange rate, although HKMC Annuity will impose no additional charges.

Chief Executive Daniel Leong said demand for more convenient cross-border payment arrangements is increasing as greater numbers of Hong Kong residents retire on the mainland and need regular access to income for everyday expenses.