(Yicai) June 23 -- China's central bank and the Hong Kong Monetary Authority have launched a new real-time payment network connecting the mainland and the special administrative region, triggering a surge in shares of related companies.

Shares of Jilin University Zhengyuan Information Technologies [SHE: 003029], an information technology security firm, hit the daily limit with a 10 percent gain, closing at CNY26.16 (USD3.60) in Shenzhen today.

Digital China Information Service Group [SHE: 000555], a developer of banking systems, also reached the limit, ending at CNY13.54. Meanwhile, Lakala Payment [SHA: 300773], a mobile payments company, jumped 13 percent, and GRG Banking Equipment [SHE: 002152], a manufacturer of automated teller machines, rose 5.3 percent.

The People's Bank of China and the HKMA launched the Payment Connect yesterday, according to the HKMA's recent press release. The system links the mainland’s Internet Banking Payment System (IBPS) with Hong Kong’s Faster Payment System (FPS), allowing individuals and institutions to make instant cross-border money transfers.

The initial group of participating mainland banks includes the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and China Merchants Bank. In Hong Kong, the first participants are the Bank of China Hong Kong, Bank of East Asia, China Construction Bank Asia, Hang Seng Bank, HSBC, and ICBC Asia. More lenders are expected to join gradually.

Residents were quick to try out the service. As of 6 p.m. yesterday, Hong Kong users had completed about 6,900 northbound remittances, with an average value of around CNY800 (USD111), based on data from the HKMA. Mainland residents completed about 19,000 transfers, averaging CNY3,100 (USD431) per transaction.

According to the Shenzhen Special Zone Daily, Hong Kong residents can remit up to HKD10,000 (USD1,274) per day, with an annual cap of HKD200,000 (USD25,478). Mainland residents are subject to an annual remittance limit of USD50,000, in line with the current foreign exchange quota for individuals.

Citic Securities noted that the Payment Connect is designed for small, convenient payments between the mainland and Hong Kong. It aims to improve efficiency, lower transaction costs, promote trade and economic exchange, and strengthen Hong Kong’s position as an international financial center and offshore yuan hub.

The Shenzhen-based investment bank added that the move could lead to deeper cooperation in the payments sector and the eventual development of a broader cross-regional payment network. The first group of 12 participating banks is expected to benefit from business expansion and increased fee-based income.

Editor: Emmi Laine