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
Beneath this new direct linkage association, buyers in Hong Kong will be capable to clear, settle, and maintain bonds lodged with the Macao CSD via their CMU accounts. Conversely, buyers in Macao may have comparable capabilities via their CSD accounts. This improvement signifies a major milestone in monetary cooperation between the 2 areas, with far-reaching implications for the synergistic improvement inside the Guangdong-Hong Kong-Macao Higher 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 numerous monetary companies, notably in Renminbi enterprise. This new linkage will additional strengthen Hong Kong’s place as a world 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 an important position. He acknowledged, “Connecting with Hong Kong’s bond market infrastructure will allow Macao to leverage its historic ties with Portuguese-speaking nations, enhancing its position as a gateway between China and these nations.”
Future Bulletins
The official launch date and detailed preparations for the direct linkage will likely be introduced sooner or later, based on the HKMA and AMCM.
About HKMA and CMU
The HKMA is Hong Kong’s central banking establishment, answerable for sustaining forex stability, selling monetary system stability, and managing the Alternate Fund. The CMU, operated by the HKMA, supplies safe and environment friendly clearing, settlement, and custodian companies for multi-currency debt securities in Hong Kong and worldwide markets. It has established linkages with regional and worldwide central securities depositories to increase its world attain.
About AMCM and MCSD
The AMCM is Macao’s central banking and built-in monetary regulatory establishment. It oversees the financial, monetary, overseas alternate, 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 supplies securities registration, clearing, settlement, and depository companies to assist 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
