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$). The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing. Terms of payment depend on the relative negotiating strength of the buyers and sellers. U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust.
Credit Rating Agencies (CRAs) in Hong Kong such as A.M. Best Asia-Pacific Limited, Fitch (Hong Kong) Limited, Moody’s Investors Service Hong Kong Limited, and Standard & Poor’s Hong Kong Limited, provide credit ratings on Hong Kong companies.
For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.
To access Hong-Kong’s ICS section on financing, visit the U.S. Department of State Investment Climate Statement website.
Both Hong Kong and Macau have an open financial system, with no controls on currency movement. A description is contained in Investment Climate Statement – Efficient Capital Markets and Portfolio Investment.
Foreign Exchange Controls
Hong Kong: The local currency, the Hong Kong Dollar (HK$), 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
JP Morgan Chase Bank, N.A.
State Street Bank and Trust Company
Wells Fargo Bank NA
East West Bank
- Hong Kong’s five largest local banks are indicated in the Investment Climate Statement.