HKMA and AMCM Establish Direct Linkage to Boost Bond Market Connectivity

The
Hong
Kong
Monetary
Authority
(HKMA)
and
the
Monetary
Authority
of
Macao
(AMCM)
have
jointly
announced
the
establishment
of
a
direct
linkage
between
the
Central
Moneymarkets
Unit
(CMU)
of
the
HKMA
and
the
Macao
Central
Securities
Depository
and
Clearing
Limited
(MCSD),
a
subsidiary
of
the
AMCM.
This
initiative
aims
to
promote
the
development
of
bond
markets
in
both
Hong
Kong
and
Macao.

Enhancing
Financial
Cooperation

Under
this
new
direct
linkage
arrangement,
investors
in
Hong
Kong
will
be
able
to
clear,
settle,
and
hold
bonds
lodged
with
the
Macao
CSD
through
their
CMU
accounts.
Conversely,
investors
in
Macao
will
have
similar
capabilities
through
their
CSD
accounts.
This
development
signifies
a
significant
milestone
in
financial
cooperation
between
the
two
regions,
with
far-reaching
implications
for
the
synergistic
development
within
the
Guangdong-Hong
Kong-Macao
Greater
Bay
Area
(GBA).

Comments
from
Key
Officials

Mr.
Eddie
Yue,
Chief
Executive
of
the
HKMA,
noted, “The
HKMA
has
been
progressively
establishing
connectivity
with
neighboring
financial
markets
to
foster
regional
cooperation
and
enhance
opportunities
for
various
financial
services,
particularly
in
Renminbi
business.
This
new
linkage
will
further
strengthen
Hong
Kong’s
position
as
an
international
financial
center
by
providing
a
wider
variety
of
investment
products
to
both
domestic
and
overseas
investors.”

Mr.
Benjamin
Chan,
Chairman
of
the
AMCM,
highlighted
the
Macao
government’s
efforts
to
promote
economic
diversification
and
foster
a
diverse
financial
ecosystem,
with
the
bond
market
playing
a
crucial
role.
He
stated, “Connecting
with
Hong
Kong’s
bond
market
infrastructure
will
enable
Macao
to
leverage
its
historical
ties
with
Portuguese-speaking
countries,
enhancing
its
role
as
a
gateway
between
China
and
these
nations.”

Future
Announcements

The
official
launch
date
and
detailed
arrangements
for
the
direct
linkage
will
be
announced
in
due
course,
according
to
the
HKMA
and
AMCM.

About
HKMA
and
CMU

The
HKMA
is
Hong
Kong’s
central
banking
institution,
responsible
for
maintaining
currency
stability,
promoting
financial
system
stability,
and
managing
the
Exchange
Fund.
The
CMU,
operated
by
the
HKMA,
provides
secure
and
efficient
clearing,
settlement,
and
custodian
services
for
multi-currency
debt
securities
in
Hong
Kong
and
international
markets.
It
has
established
linkages
with
regional
and
international
central
securities
depositories
to
expand
its
global
reach.

About
AMCM
and
MCSD

The
AMCM
is
Macao’s
central
banking
and
integrated
financial
regulatory
institution.
It
oversees
the
monetary,
financial,
foreign
exchange,
and
insurance
markets
to
ensure
their
smooth
operations.
The
MCSD,
a
subsidiary
of
the
AMCM
established
in
December
2021,
operates
the
CSD
and
provides
securities
registration,
clearing,
settlement,
and
depository
services
to
support
the
efficient
operation
of
Macao’s
bond
market.

For
more
information,
visit
the
official
announcement
on
the

HKMA
website.

Image
source:
Shutterstock