Remittance to and from China: Smart Options for Businesses

A Report by CYS Global Remit Digital Media Marketing Team China continues to be a pivotal trade partner for Singapore’s SMEs, financial institutions, and global enterprises. Efficient cross-border payment solutions are essential for transactions such as importing components, paying suppliers, and receiving payments from China. However, remitting funds to and from Mainland China presents unique challenges.

At CYS Global Remit, we understand the importance of operational efficiency, regulatory compliance, and cost-effectiveness in navigating this complex market. This week, we explore the evolving remittance landscape between Singapore and China and propose smarter alternatives to traditional bank transfers.

The Traditional Route: Secure, But Not Always Practical

Many businesses rely on SWIFT-based transfers to send funds to China. While this system is well-established and trusted, it presents several drawbacks for SMEs:

Processing Delays: Transfers can take between 2 to 5 business days due to the involvement of intermediary banks.
Higher Costs: Bank transfers often entail flat fees, service charges, and unfavorable foreign exchange (FX) rates.
Limited Flexibility: The process requires extensive documentation, and any errors can lead to delays or rejected transactions.

While these challenges may be manageable for larger corporations, they can pose significant hurdles for fast-paced SMEs engaged in frequent transfers.

Regulatory Nuances: Understanding the CNY and CNH Divide

China’s dual-currency system adds another layer of complexity. CNY (Chinese Yuan Renminbi) is used domestically, while CNH (offshore Yuan) is traded internationally. Exchange rates between the two can vary, particularly during periods of market volatility.

This distinction is critical for businesses. If a supplier expects payment in CNY but receives CNH instead, it could create complications. Partnering with an informed financial service provider can help ensure accuracy and timeliness in payments.

A Better Way: Purpose-Built Remittance Solutions

Modern payment service providers, such as CYS Global Remit, are bridging the gap between flexibility and compliance by offering specialized remittance solutions tailored for the Asia-Pacific region.

Why Businesses Are Opting for Payment Institutions

Faster Settlement: Many providers facilitate same-day or next-business-day transfers through robust networks with local payment agents and banks.
Lower Costs: By circumventing intermediary banks, businesses can significantly reduce transaction fees.
Competitive FX Rates: Unlike traditional banks, which impose high spreads, payment service providers offer wholesale exchange rates, leading to substantial savings—especially for frequent or large-amount transactions. For example, remitting SGD 100,000 through a traditional bank may lead to effective rates that are 1-2% higher than those offered by a specialized provider, resulting in avoidable costs of SGD 1,000–2,000.
Localized Expertise: Payment institutions with a focus on the APAC region provide invaluable guidance on documentation, payment structuring, and FX risk optimization, all while ensuring compliance with Singaporean and Chinese regulations.

CYS Global Remit: Your Partner in the China Corridor

With over 40 years of experience, CYS Global Remit serves businesses throughout Asia. Our strong partnerships with banks and payment agents, particularly in China, enable us to deliver fast, compliant, and cost-effective payment solutions.

We offer:

Settlements in both CNY and CNH
Same-day cross-border remittances to China
Dedicated FX support for volatile currency pairs
Pre-transaction advisory services to avoid costly errors and compliance issues

Whether you're a Singaporean SME making payments to suppliers in Shenzhen or an institution seeking scalable payment solutions in Tier 2 Chinese cities, our team is here to support you.

Final Thoughts

The remittance landscape is evolving, and your strategy should evolve alongside it. Businesses are increasingly seeking flexibility, speed, and transparency in payments, moving away from traditional bank wires toward smarter solutions that provide a competitive advantage.

At CYS Global Remit, we empower you to move faster, spend less, and extend your reach across borders. Contact us to discover how we can assist with your transactions to and from China.

For inquiries or to learn more about our China corridor solutions, reach out to your CYS Account Manager or email us at info@cys.com.sg.