Signifying a new milestone in financial cooperation, a direct linkage between Hong Kong and Macao's central securities depositories was launched on Tuesday, promoting the development of the two cities’ bond markets.
The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) jointly announced the official launch of the direct linkage between the Central Moneymarkets Unit (CMU) operated by CMU OmniClear Limited and the central securities depository operated by Macao Central Securities Depository and Clearing Ltd.
The connection between the bond market infrastructures in the Hong Kong and Macao special administrative regions will provide a cross-boundary investment and financing channel, enabling investors from both markets to participate in each other's bond market with greater ease and efficiency, the HKMA and AMCM said in a joint statement.
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"To enhance the competitiveness of Hong Kong as an international financial center, the HKMA has established connectivity with various neighboring financial markets over the years, and continues to explore direct linkages with other central securities depositories,” Chief Executive of the HKMA Eddie Yue Wai-man was quoted as saying in the statement.
“The direct linkage showcases Hong Kong's role as a 'super-connector' and represents a major step towards developing the CMU into an international CSD in Asia," he added.
Chairman of the AMCM Benjamin Chan said the official launch of the direct linkage between the bond markets of Macao and Hong Kong “achieved the first connectivity of Macao's bond market infrastructure established with a CSD located outside of Macao.”
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“This 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,” Chan said, adding that this will further strengthen the Macao SAR’s role as the financial services platform serving the Chinese mainland and Portuguese-speaking countries.