payment services in Chinese yuan (CNY)

We are delighted to inform you that, as of 4 July 2016, K&H Bank offers payment services to SME and corporate clients in Chinese yuan (CNY).

about payment services offered in Chinese yuan

The official ISO currency code of the Chinese Renminbi is CNY. However, a separation exists between onshore (“CNY”) and offshore (“CNH”) Renminbi as they are subject to different regulations. Offshore territories include but are not limited to Hong Kong, London, Singapore and Frankfurt. As both codes stand for the same currency, all payment systems, reports and records use the CNY currency code. 

The CNY is supervised by the Chinese authorities. The conversion of CNY into other currencies and international payments in CNY are subject to regulatory restrictions so such operations must conform to the prevailing regulatory requirements. Accordingly the Chinese authorities may request additional information from companies to confirm their compliance with statutory requirements before executing payment orders.

CNH can be freely converted and used for payment outside the People’s Republic of China but remitting funds thereto in CNH is also subject to restrictions. Funds remitted to the People’s Republic of China under trade contracts are automatically converted into CNY and vice versa. However, because there are different markets involved, offshore (CNH) and onshore (CNY) Renminbi will be converted into other currencies at different exchange rates, and they are subject to different interest conditions.

Payments made in yuan must meet special terms and conditions because transferring funds in yuan to the People’s Republic of China is subject to restrictions. Such payments must be for the purpose of settling a trade transaction, or for transferring capital or other income. Such restrictions do not apply if the beneficiary is located outside the People’s Republic of China.

The required purpose of payment code must be stated in the “Narrative” field of the payment order as otherwise it cannot be executed. Please check the purpose of payment code with the beneficiary to make sure that it is the right one for your payment order.

Pursuant to the restrictions in place, the Chinese financial authorities may stop and check a payment order at any time, including its purpose of payment code, and they may also require that contracts and any other documents related to the transaction in question be presented. If the parties are unable to do so or the documentation presented does not substantiate the transaction in question, the Chinese financial authorities may refuse to execute the payment order.

Purpose of payment code



trade goods, import-export payments


trade services, import-export payments (insurance, travel, communication services, licence and patent fees etc.)


capital account transactions


charitable donations and other income
(remittance of profits, bonus, dividends, tax and scholarships)

Please contact your relationship manager or call K&H’s Corporate Customer Service (CCS) at