The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) have unveiled a new direct linkage between their bond market infrastructures to boost financial collaboration. This initiative will connect the HKMA’s Central Moneymarkets Unit (CMU) with the Macao Central Securities Depository and Clearing Limited (MCSD), a subsidiary of the AMCM, aiming to advance the bond markets in both regions.
Strengthening Financial Cooperation
This direct linkage allows investors in Hong Kong to clear, settle, and hold bonds registered with the Macao CSD via their CMU accounts. Likewise, Macao investors will have the same capabilities through their CSD accounts. This development represents a notable step in financial integration between Hong Kong and Macao, with significant benefits for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Statements from Officials
Eddie Yue, Chief Executive of the HKMA, remarked that this move is part of Hong Kong’s broader strategy to enhance regional financial connectivity and expand investment opportunities, particularly in Renminbi business. He emphasized that this linkage would further solidify Hong Kong’s role as a global financial hub by broadening investment product offerings.
Benjamin Chan, Chairman of the AMCM, underscored the Macao government’s commitment to economic diversification and the role of the bond market in this effort. He noted that the linkage with Hong Kong’s bond market infrastructure will enhance Macao’s connectivity with Portuguese-speaking countries, strengthening its position as a bridge between China and these nations.
Future Updates
The official launch date and further details regarding the direct linkage will be announced at a later time by the HKMA and AMCM.
About the HKMA and CMU
The HKMA, Hong Kong’s central banking authority, is tasked with maintaining currency stability, ensuring financial system stability, and managing the Exchange Fund. The CMU, managed by the HKMA, offers secure clearing, settlement, and custody services for multi-currency debt securities in both Hong Kong and global markets. It has established connections with various regional and international central securities depositories.
About the AMCM and MCSD
The AMCM is Macao’s central banking and financial regulatory body, overseeing monetary, financial, foreign exchange, and insurance markets. The MCSD, a subsidiary of the AMCM since December 2021, operates the CSD and provides essential securities registration, clearing, settlement, and depository services to support Macao’s bond market.
For further details, visit the HKMA’s official website.
