Hong Kong and Macao create direct link between bond markets
21 January 2025 Hong Kong
Image: zhao_dongfang/stock.adobe.com
The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) have launched a direct link between Hong Kong鈥檚 Central Moneymarkets Unit (CMU) and Macao鈥檚 central securities depository (CSD).
This connection, managed by subsidiaries of each authority, aims to boost bond market development in both regions by providing a cross-border investment and financing channel.
Investors from both markets can now participate in each other鈥檚 bond market with greater ease and efficiency, according to the HKMA.
Benjamin Chan, chairman of the AMCM, comments 鈥淭he official launch of the direct linkage between the bond markets of Macao and Hong Kong achieved the first connectivity of Macao鈥檚 bond market infrastructure established with a CSD located outside of Macao.
鈥淭his will provide international investors, including those from Portuguese-speaking countries, with a convenient channel to participate in the bond markets of Macao and Hong Kong.鈥�
Financial cooperation between Hong Kong and Macao further supports the development of the Guangdong-Hong Kong-Macao Greater Bay Area, which is an integrated economic group of nine cities and two special administrative regions in South China.
Eddie Yue, chief executive of the HKMA, adds: 鈥淭o enhance the competitiveness of Hong Kong as an international financial centre, the HKMA has established connectivity with various neighbouring financial markets over the years, and continues to explore direct linkages with other central securities depositories.
鈥淭he direct linkage showcases Hong Kong鈥檚 role as a super-connector and represents a major step towards developing the CMU into an international CSD in Asia.鈥�
This connection, managed by subsidiaries of each authority, aims to boost bond market development in both regions by providing a cross-border investment and financing channel.
Investors from both markets can now participate in each other鈥檚 bond market with greater ease and efficiency, according to the HKMA.
Benjamin Chan, chairman of the AMCM, comments 鈥淭he official launch of the direct linkage between the bond markets of Macao and Hong Kong achieved the first connectivity of Macao鈥檚 bond market infrastructure established with a CSD located outside of Macao.
鈥淭his will provide international investors, including those from Portuguese-speaking countries, with a convenient channel to participate in the bond markets of Macao and Hong Kong.鈥�
Financial cooperation between Hong Kong and Macao further supports the development of the Guangdong-Hong Kong-Macao Greater Bay Area, which is an integrated economic group of nine cities and two special administrative regions in South China.
Eddie Yue, chief executive of the HKMA, adds: 鈥淭o enhance the competitiveness of Hong Kong as an international financial centre, the HKMA has established connectivity with various neighbouring financial markets over the years, and continues to explore direct linkages with other central securities depositories.
鈥淭he direct linkage showcases Hong Kong鈥檚 role as a super-connector and represents a major step towards developing the CMU into an international CSD in Asia.鈥�
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