HKMA and AMCM Establish Direct Linkage to Boost Bond Market Connectivity

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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.

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