Establishment of direct linkage between Central Moneymarkets Unit of HKMA and Macao Central Securities Depository and Clearing Limited of AMCM
To promote the development of bond markets in Hong Kong and Macao, the
Hong Kong Monetary Authority (HKMA) and the Monetary Authority of
Macao (AMCM) today (16 September) jointly announced the establishment
of a direct linkage between the Central Moneymarkets Unit (CMU) of the
HKMA and the central securities depository (CSD) operated by Macao
Central Securities Depository and Clearing Limited (MCSD), a wholly-
owned subsidiary of the AMCM.
Under the direct linkage
arrangement, investors in Hong Kong, through their accounts at the
CMU, will be able to clear, settle and hold bonds lodged with the CSD
in Macao; while investors in Macao, through their accounts in the CSD
in Macao, will also be able to clear, settle and hold bonds lodged
with the CMU. This arrangement will mark a new milestone in the
financial cooperation between Hong Kong and Macao, signifying far-
reaching implications for the synergistic development of the core
cities in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
Mr Eddie Yue, Chief Executive of the HKMA, said, "The HKMA, in
recent years, has gradually established connectivity with various
neighbouring financial markets to strengthen regional cooperation, and
to bring in more opportunities for all sorts of financial services, in
particular the Renminbi business. This also provides domestic and
overseas investors with a greater variety of investment products, so
as to further strengthen Hong Kong's competitiveness as an
international financial centre. On this basis, fostering connectivity
between the bond market infrastructures in Hong Kong and Macao is a
major manifestation of the synergistic development of the financial
markets in the GBA, and will develop CMU into an international CSD in
Asia, leveraging its role as a super-connector. ”
Mr Benjamin
Chan, Chairman of the AMCM, said, "The Macao Special Administrative
Region (SAR) Government has been promoting appropriate economic
diversification and fostering diversity within the financial
ecosystem, with bond market serving as the crucial cornerstone. This
could provide another financing channel to support major national
strategic deployments, including the development of the GBA. Besides,
based on the historical ties between Macao and Portuguese-speaking
countries, connecting with the bond market infrastructure in Hong Kong
will enable Macao to further leverage its role as a gateway between
China and Portuguese-speaking countries. It will also strengthen
Macao’s function as the financial services platform serving China and
Portuguese‑speaking countries, and achieve mutual market access among
the financial markets and financial market infrastructures in the GBA.
"
The official launch date and detailed arrangements for the
direct linkage will be announced in due course.
About HKMA
The HKMA is Hong Kong's central banking institution. The
HKMA's main functions are: (i) maintaining currency stability within
the framework of the Linked Exchange Rate System; (ii) promoting the
stability and integrity of the financial system, including the banking
system; (iii) helping to maintain Hong Kong's status as an
international financial centre, including the maintenance and
development of Hong Kong's financial infrastructure; and (iv) managing
the Exchange Fund.
The CMU, owned and operated by the HKMA,
provides secure and efficient clearing, settlement and custodian
services for Hong Kong’s multi-currency debt securities and those in
international markets. Over the years, the CMU has continuously
established linkages with regional and international central
securities depositories to expand its issuer and investor reach
globally. With the launch of Bond Connect scheme in 2017, the CMU has
become a pivotal financial market infrastructure serving both onshore
and offshore market participants.
Please visit https://www.
cmu. org. hk/ for more information about the CMU.
About AMCM
The AMCM is Macao’s central banking and integrated financial
regulatory institution. Its main functions include: (i) assisting the
Chief Executive of Macao SAR in formulating and implementing monetary,
financial, exchange rate and insurance policies; (ii) overseeing the
monetary, financial, foreign exchange and insurance markets in
accordance with relevant statutory regulations to ensure their smooth
operations, as well as supervising and regulating the entities
operating in the respective markets; (iii) maintaining the internal
stability and external solvency of the domestic currency to ensure its
full convertibility; (iv) managing foreign exchange reserves and the
fiscal reserve; and (v) maintaining the stability of the financial
system.
With the support of the Central Government, the AMCM
constructed the CSD and set up the MCSD as its wholly owned subsidiary
in December 2021. The MCSD is responsible for the operation of the
CSD. Currently, the MCSD mainly provides securities registration,
clearing, settlement, depository and other related services. The MCSD
aims to provide financial-market infrastructure services to support
the efficient and safe operations of the Macao bond market, which is
expected to become an investment and financing platform that is widely
recognised by local and international issuers, investors and other
participants.
Please visit https://www. mcsd. com. mo/ for
more information about the MCSD. Hong Kong Monetary Authority
Monetary Authority of Macao 16 September 2024