On December 4, Unionpay International declared that it will launch direct yuan clearing services outside China's mainland, with Hong Kong to be the first place to receive the services.

Sogo, Chow Tai Fook, and Oriental Watch are among the first batch of Hong Kong merchants that will enjoy direct yuan clearing services.

UnionPay International CEO Cai Jianbo said that launching the services will reduce exchange losses for merchants, and make them more willing to accept Unionpay cards.

In the long run, the services will help expand the yuan capital pool in Hong Kong, and promote the development of offshore yuan business, Cai said.