A leading official with China Unionpay Co. Ltd. (CUP), the onlynational payment network used by major banks on the inland areas of China, said the cards can be used in about 4,000 businesses, including major shopping malls, specialty shops, and beauty parlors in Hong Kong.

The cards, which carry special CUP signs, can also be used for withdrawing Hong Kong dollars in cash equal to no more than 5,000 yuan each day through local ATM machines, said the official, who declined to be named. However, there is no ceiling of consumption through POS machines.

According to a statement released on Friday by the People's Bank of China, the country's central bank, inland bank cards in Renminbi can be officially used in Hong Kong as of Jan. 18, 2004.

Central bank authorities noted that the move will facilitate greater spending by inland travelers to Hong Kong and make closer trade and tourism exchanges between the special administrative region of China and the inland areas so as to boost overall economic growth.

The 29 banks that are authorized to issue the cards include thecountry's four biggest banks.

(Xinhua News Agency January 18, 2004)