Source: https://rivet.global/blog/hong-kong-traders-paying-mainland-suppliers-cny-usd
Published: 2026-10-19 · Updated: 2026-10-19 · By Rashidatou K.

# Hong Kong trading companies paying mainland suppliers: yuan, dollars and FPS

Hong Kong traders pay factories in Guangdong and beyond in yuan, Hong Kong dollars or US dollars. How to choose the currency, avoid fraud and use local rails.

## Key takeaways

- Mainland factories may invoice Hong Kong traders in yuan, Hong Kong dollars or US dollars.
- Paying in yuan sometimes lowers the price, because the factory avoids converting.
- The Hong Kong dollar is pegged to the US dollar in a narrow band, so HKD and USD carry little rate risk between them.
- FPS moves Hong Kong dollars and yuan between local accounts instantly for local payments.

A Kwun Tong trading company buys toys from Shenzhen, kitchenware from Dongguan and textiles from Zhejiang, and sells to retailers in Europe and the US. Its Shenzhen factory quotes 3 percent lower in yuan. Its Dongguan factory invoices in US dollars. Its own logistics provider in Hong Kong wants Hong Kong dollars by FPS.

## Three currencies, one supply chain

- Yuan (CNY): many mainland factories prefer it for domestic costs and may quote lower.
- US dollars: common for export pricing, especially for factories used to Western buyers.
- Hong Kong dollars: for local services in Hong Kong.

The Hong Kong dollar is pegged to the US dollar between 7.75 and 7.85, so switching between HKD and USD carries little rate risk. Yuan moves against both.

## Choosing yuan or dollars

Ask each factory for a price in both. A yuan price that is lower by more than your cost of buying yuan is a saving. Holding yuan for regular suppliers lets you buy in larger amounts at better rates.

## Fraud

Supplier fraud is a constant risk in this trade: emails from lookalike domains announcing new accounts, often in another company's name or in another city. Before paying new or changed details:

- check the account name matches the factory's legal name,
- confirm by video call with a contact you already know,
- require a second approver.

## Local payments by FPS

Within Hong Kong, the Faster Payment System moves Hong Kong dollars and renminbi between participating accounts instantly, around the clock. Pay local logistics, warehousing and staff costs that way.

## Paying into Hong Kong: the local rail

| What | Detail |
|---|---|
| Local rail | Faster Payment System (FPS) |
| Run by | Hong Kong Interbank Clearing Limited, under the HKMA |
| Settlement | Seconds, 24/7, in HKD or CNY |

Source: [HKMA: Faster Payment System](https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/financial-market-infrastructure/faster-payment-system-fps/). Checked when this guide was last updated; the scheme's own page has the current figures.

## Where Rivet fits

A Rivet business account accepts registered companies after verification, including Hong Kong companies. On the Scale plan it gives Hong Kong dollar details and balances in 30 currencies, including yuan, beside US account details on every plan. Suppliers in 120+ countries can be paid at a rate shown before you confirm, and from the Growth plan payouts can require a second approver. Rivet is not a bank; regulated partner institutions hold the funds.

See [how to pay suppliers in China](/blog/how-to-pay-suppliers-in-china).

## Questions

### Should a Hong Kong trader pay mainland factories in yuan or dollars?

Ask for both prices. Some factories quote lower in yuan. Compare with what it costs you to buy yuan.

### Is the Hong Kong dollar pegged?

Yes, the HKMA keeps it within 7.75 to 7.85 per US dollar under the Linked Exchange Rate System.

### What is FPS?

Hong Kong's Faster Payment System, run by the HKMA, which moves Hong Kong dollars and renminbi instantly between participating accounts.

### How do I avoid supplier payment fraud?

Check that the account name matches the factory's legal name, confirm changes by video call, and require a second approver for new details.