China will postpone the launch of its new international payment system, although some basic functions will be available by year-end, said a senior executive at the State-owned Bank of China Ltd on Friday.

The system, known as the China International Payment System, is being developed to facilitate cross-border yuan clearance among market players and further boost the global profile of the Chinese currency.

Zhang Lei, general manager of global payments and clearing at the bank, told a news conference in Beijing that overseas institutions would not be allowed to connect with the system in the first phase, because time-zone differences might cause liquidity management problems.