James Ding
Sep 16, 2024 07:20
The Hong Kong Financial Authority and the Financial Authority of Macao announce a direct linkage between their bond market infrastructures to boost monetary cooperation.
The Hong Kong Financial Authority (HKMA) and the Financial Authority of Macao (AMCM) have collectively introduced the institution of a direct linkage between the Central Moneymarkets Unit (CMU) of the HKMA and the Macao Central Securities Depository and Clearing Restricted (MCSD), a subsidiary of the AMCM. This initiative goals to advertise the event of bond markets in each Hong Kong and Macao.
Enhancing Monetary Cooperation
Below this new direct linkage association, buyers in Hong Kong will have the ability to clear, settle, and maintain bonds lodged with the Macao CSD by means of their CMU accounts. Conversely, buyers in Macao may have related capabilities by means of their CSD accounts. This improvement signifies a big milestone in monetary cooperation between the 2 areas, with far-reaching implications for the synergistic improvement throughout the Guangdong-Hong Kong-Macao Larger Bay Space (GBA).
Feedback from Key Officers
Mr. Eddie Yue, Chief Government of the HKMA, famous, “The HKMA has been progressively establishing connectivity with neighboring monetary markets to foster regional cooperation and improve alternatives for varied monetary providers, significantly in Renminbi enterprise. This new linkage will additional strengthen Hong Kong’s place as a global monetary middle by offering a greater diversity of funding merchandise to each home and abroad buyers.”
Mr. Benjamin Chan, Chairman of the AMCM, highlighted the Macao authorities’s efforts to advertise financial diversification and foster a various monetary ecosystem, with the bond market enjoying a vital function. He acknowledged, “Connecting with Hong Kong’s bond market infrastructure will allow Macao to leverage its historic ties with Portuguese-speaking international locations, enhancing its function as a gateway between China and these nations.”
Future Bulletins
The official launch date and detailed preparations for the direct linkage might be introduced sooner or later, in keeping with the HKMA and AMCM.
About HKMA and CMU
The HKMA is Hong Kong’s central banking establishment, liable for sustaining forex stability, selling monetary system stability, and managing the Change Fund. The CMU, operated by the HKMA, offers safe and environment friendly clearing, settlement, and custodian providers for multi-currency debt securities in Hong Kong and worldwide markets. It has established linkages with regional and worldwide central securities depositories to develop its international attain.
About AMCM and MCSD
The AMCM is Macao’s central banking and built-in monetary regulatory establishment. It oversees the financial, monetary, international change, and insurance coverage markets to make sure their clean operations. The MCSD, a subsidiary of the AMCM established in December 2021, operates the CSD and offers securities registration, clearing, settlement, and depository providers to help the environment friendly operation of Macao’s bond market.
For extra info, go to the official announcement on the HKMA web site.
Picture supply: Shutterstock
