Hong kong Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in hong kong, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Financing-Hong Kong & Macau
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Methods of Payment

The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services.  Letters of credit, documentary collection, and international remittance services are widely available.  The risk of financing receivables can be readily evaluated via locally available credit information.  Prospective U.S. exporters frequently benefit from established U.S.-Hong Kong banking relationships when determining credit risk.

The preferred method of quoting is to use the “CIF” (Cost Insurance Freight) or “C and F” (Cost and Freight) destination terms of sale in Hong Kong dollars (HK$).  The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing.  Terms of payment depend on the relative negotiating strength of the buyers and sellers.  U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them.  Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust.

Credit Rating Agencies (CRAs) in Hong Kong such as A.M. Best Asia-Pacific Limited, Fitch (Hong Kong) Limited, Moody’s Investors Service Hong Kong Limited, and Standard & Poor’s Hong Kong Limited, provide credit ratings on Hong Kong companies.

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

Banking Systems

Both Hong Kong and Macau have an open financial system, with no controls on currency movement. A description is contained in Investment Climate Statement – Efficient Capital Markets and Portfolio Investment.

For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.

Foreign Exchange Controls

Hong Kong: The local currency, the Hong Kong Dollar (HK$), is freely convertible, and there are no foreign exchange controls.

Macau: The local currency is the Macau Pataca (MOP) which is also freely convertible and free of foreign exchange controls.  The Hong Kong Dollar is also usually accepted in Macau as a means of payment for commerce and retail transactions.

US Banks & Local Correspondent Banks

Licensed U.S. Commercial Banks in Hong Kong:

  • American Express Bank
  • Bank of America, N.A.
  • Bank of New York Mellon
  • Citibank NA
  • JP Morgan Chase Bank, N.A.
  • State Street Bank and Trust Company
  • Wells Fargo Bank NA
  • East West Bank
  • Cathay Bank

Hong Kong’s five largest local banks are indicated in the Investment Climate Statement.

 


 

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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