Pearl River Post
Glossary

Hong Kong business glossary

Plain-language definitions for the terms in banking, company setup and cross-border payment documents.

Terms

24 terms, plainly defined

HKMA

Hong Kong Monetary Authority — the central banking institution that authorises and supervises banks, and licenses stored value facilities.

Virtual bank

An HKMA-licensed bank that delivers retail and/or business services primarily through digital channels rather than branches.

Licensed bank

An institution holding a full banking licence under the Banking Ordinance; the only type allowed to take deposits of any size and maturity from the public.

Deposit Protection Scheme (DPS)

Statutory scheme protecting eligible deposits at member banks, up to HK$800,000 per depositor per bank.

SVF

Stored value facility — a licensed e-wallet or prepaid facility under the Payment Systems and Stored Value Facilities Ordinance.

MSO

Money service operator — a business licensed by the Customs and Excise Department to provide money-changing or remittance services.

EMI

Electronic money institution — a term from other jurisdictions often used loosely for non-bank payment providers. Check the actual Hong Kong or overseas licence.

CDD / KYC / KYB

Customer due diligence: identifying and verifying a customer and its controllers (“know your customer / business”), required under the AML ordinance.

Companies Registry

The government department that incorporates companies and keeps the public register of company filings.

BR (Business Registration)

Registration of a business with the IRD’s Business Registration Office; the certificate must be displayed and renewed.

Annual return

A filing a company delivers to the Companies Registry every year; for a private company, within 42 days after each anniversary of incorporation.

SCR

Significant controllers register — a company’s register of the people and entities with significant control over it.

Company secretary

A statutory officer every Hong Kong company must appoint; must be Hong Kong-resident (individual) or Hong Kong-based (body corporate).

TCSP

Trust or company service provider — a business licensed to provide company formation, secretarial or registered-address services.

Territorial tax

Hong Kong taxes only profits arising in or derived from Hong Kong; profits sourced elsewhere are not chargeable.

Offshore claim

A position in a profits tax return that some or all profits are sourced outside Hong Kong, supported by facts and records.

Two-tiered profits tax

For corporations, 8.25% on the first HK$2 million of assessable profits and 16.5% on the remainder.

FPS

Faster Payment System — Hong Kong’s 24/7 real-time payment system for HKD and RMB, operated by HKICL.

CHATS

Clearing House Automated Transfer System — Hong Kong’s real-time gross settlement system for large-value interbank payments.

CIPS

Cross-border Interbank Payment System — China’s system for clearing and settling cross-border RMB payments.

CNH / CNY

Offshore and onshore renminbi: the same currency traded in different markets, often at slightly different rates.

SWIFT / UETR

The interbank messaging network, and the unique end-to-end transaction reference used to track a payment.

GBA

Greater Bay Area — Hong Kong, Macau and nine cities in Guangdong, including Shenzhen, Guangzhou, Zhuhai, Dongguan and Foshan.

SAFE

State Administration of Foreign Exchange — the Mainland authority overseeing foreign-exchange administration.

Using the glossary

Definitions are a starting point

These definitions are written for orientation. Before relying on a term in a filing, a contract or a bank form, read the definition in the relevant ordinance or official guidance listed below.

FAQ

Questions readers ask

Is a virtual bank the same as an e-wallet?

No. A virtual bank is a licensed bank. An e-wallet is usually a stored value facility, licensed under a different ordinance and not covered by deposit protection.

What is the difference between BR and incorporation?

Incorporation creates the company at the Companies Registry. Business Registration registers the business with the IRD and must be renewed.

What does GBA include?

The Greater Bay Area covers Hong Kong, Macau and nine Guangdong cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen and Zhaoqing.

Is CNH different from CNY?

They are the same currency, renminbi, traded offshore (CNH) and onshore (CNY). Rates can differ slightly between the two markets.

Sources

Primary references

  1. Hong Kong Monetary AuthorityChecked 2026-11-12
  2. Banking Ordinance (Cap. 155)Checked 2026-11-12
  3. Payment Systems and Stored Value Facilities Ordinance (Cap. 584)Checked 2026-11-12
  4. Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615)Checked 2026-11-12
  5. Companies Ordinance (Cap. 622)Checked 2026-11-12
  6. Business Registration Ordinance (Cap. 310)Checked 2026-11-12
  7. IRD — profits taxChecked 2026-11-12
  8. HKICL — Faster Payment SystemChecked 2026-11-12
  9. Cross-border Interbank Payment System (CIPS)Checked 2026-11-12