China payments made easy
Opening the door to Asia
Although buying from China is easier than ever thanks to advances in transportation and communication, it can still seem daunting.
WorldFirst can help your business pay Asian suppliers like a local, with fast and secure same day and next day transfers in CNH, EUR, USD and HKD to Hong Kong and Mainland China.
Speed up payments, and your supply chain
Access our networks and over a decade of experience helping businesses pay into China.
Currency | Settlement time | Payment cut off time | Full value transfer* | Pay “on behalf of”** | Supplier account |
---|---|---|---|---|---|
CNH | Same day | GMT 10:00 | Yes | Yes – notes required** | |
USD | Next day | GMT 17:30 | Yes | Yes | |
CNH | Same day | GMT 12:00 | Yes | Yes | |
USD | Same day | GMT 10:30 | Yes | Yes | |
HKD | Same day | GMT 10:30 | Yes | Yes | |
USD*** | Same day | GMT 17:30 | Yes | Yes |
* Full value transfer: Your beneficiary will receive the entire funds, without any foreign bank charges.
** Pay on behalf of: WorldFirst sends payments on your behalf in your name, providing clarity and ease of reconciliation when payments are received by the payee. Please note: for CNH payments you also need to include “on behalf of [your name]” in payment notes.
*** When opting to pay suppliers on Alibaba.com by transfer to Singapore or Hong Kong, settlement accounts
Benefits to your business
Speed up international payments
- WorldFirst can reach banks anywhere in China. Transactions can be settled directly in CNH with same-day and next-day payment options
- Extend your business reach with same-day USD and HKD payments to any Hong Kong-based account
- Hong Kong-based beneficiaries can receive funds more efficiently with WorldFirst’s local pay-out capability
Increased flexibility
- Increase your negotiation power. Making payments directly in CNH rather than USD is quick, convenient, and can save you money
- Flexibility to pay Chinese suppliers in CNH, USD, HKD, or EUR
- Open CNH* and HKD* currency accounts, to collect, convert or make payments
*Currency accounts located in Hong Kong
Experience and networks
- WorldFirst has made more than 1 million payments into China over the past 12 months, valued at almost €14.8 billion
- Since 2019, we’ve been part of Ant Group, the operator of digital lifestyle platform Alipay. Alipay serves 1.3 billion users worldwide with its global e-wallet partners, allowing us to leverage one of the largest global commerce ecosystems in the world
FAQs
Is it safe to buy from China?
The same as when purchasing goods from any foreign company, it’s important to do your research when considering a new supplier. You should also find out about any licensing and import obligations. China offers an abundance of affordable supply options. These can be high quality and supplied at scale – be it large or small – by reliable suppliers that are keen to grow their own businesses.
What is the currency of China?
China’s currency is officially called the renminbi.
Renminbi comes in two forms: onshore and offshore. Onshore renminbi (CNY) is used in mainland China and offshore renminbi (CNH) outside China.
The yuan is actually the unit of account. It was first issued by the People’s Bank of China in 1948. While the two terms are used interchangeably, the relationship is similar to that of sterling and pounds in the UK.
Can you exchange euros to Chinese yuan?
Yes, but if you’re outside of China you can only purchase CNH against EUR. CNH can be traded freely against other currencies in the international exchange markets, just like USD or GBP or EUR, so it’s a popular option for paying suppliers in China.
CNH vs CNY
The main differences between the CNH and CNY are the regulations and restrictions imposed upon them and their use. Transactions in CNY are restricted to onshore use while CNH isn’t. While the local value of CNY is dictated by the People’s Bank of China, CNH is freely tradeable like most other currencies. This can lead to the value of the currencies diverging and on any day of the week an offshore yuan (CNH) being valued by the markets as worth more or less than one available on the Chinese mainland (CNY).
Why can some suppliers not receive CNH?
A Chinese seller may not have the required regulatory documents in place in China, i.e. an export licence. This often results in returned CNH payments, as the China’s State Administration of Foreign Exchange (SAFE) will block the payment. Always check with your supplier to ensure they’re licensed to export goods and that they can provide the necessary documents to their bank in China.
Why do beneficiary banks require supporting materials before they release funds to the beneficiary?
According to SAFE guidelines, when a corporate (the beneficiary) handles the foreign exchange receipts and payments for goods trades, the bank may inquire about the corporate directory information and classification information.
This is conducted via the SAFE system in accordance with the business development principles of “know your customers”, “know your business”, and due diligence and the provisions of these guidelines to confirm the authenticity, rationality and logic of the receipt and payment.
The bank may confirm, but are not limited to: nature of the fund, the transaction entity, amount and other elements listed in the transaction document are consistent with the foreign exchange business.
What trade and due diligence information is commonly asked for by a bank when crediting the nominated beneficiary account?
Pre-payment (payments before the export of goods): sales contracts, commercial invoices, etc. The bank may require receipt of the final payment within 30 days and the corresponding export certificate.
Post payment (payments after the export of goods): sales contract, commercial invoices, bill of lading, customs declaration and other information required by the bank.
Note: The above isn’t a comprehensive list. Please check with your supplier to ensure you’re supplying all necessary documentation.
Open an account for free
See how easy it is to open an account online. You can start sending fast cross-border payments at great rates, right away.
Businesses like yours trust WorldFirst
- Almost 1,000,000 business have sent $200B around the world with WorldFirst and its partner brands since 2004
- Your money is safeguarded with leading financial institutions