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 Portuguesespeaking 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.