Hong Kong Monetary Authority Highlights GBA Role in Financing and Market Connectivity
This article contains AI assisted creative content
At the 7th Guangdong-Hong Kong-Macao Greater Bay Area (GBA) Financial Development Forum, Chen Weimin, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), outlined Hong Kong's latest initiatives to support regional financial development. His remarks centered on two priorities: strengthening financial support for the real economy and enhancing connectivity between mainland China and international markets.
Financing and Corporate Expansion
With Guangdong maintaining its position as China's largest trading province and advancing in technology and manufacturing, Hong Kong continues to serve as an international platform for enterprises expanding abroad. HKMA's efforts focus on two areas:
-
Corporate Financing: Hong Kong offers a wide range of financing channels, including bank loans, bond issuance, and stock listings. The city has become Asia's leading offshore bond market. For example, Guangdong and Shenzhen have raised RMB 27 billion in Hong Kong through green bond issuance, demonstrating both commitment to carbon reduction and international financing standards.
-
Cross-Border Credit Information: Cooperation between Hong Kong and Shenzhen banks has improved access to cross-border credit data, enabling more reliable assessments for corporate financing.
-
Treasury Centers: HKMA encourages mainland companies to establish overseas business headquarters and corporate treasury centers in Hong Kong, centralizing overseas capital management.
Promoting RMB Internationalization
TWO
To facilitate the use of renminbi in trade and investment, HKMA launched a liquidity arrangement with the People's Bank of China earlier this year. This initiative provides Hong Kong banks with stable, lower-cost RMB funding to expand trade financing. The program has achieved encouraging results and is expected to be broadened in scope.
Payments and Technology
THREE
Chen noted inefficiencies in global payment systems, including multiple intermediaries and high transaction costs. Hong Kong is advancing the use of central bank digital currency (CBDC), stablecoins, and tokenized commercial bank money to enhance efficiency in cross-border trade and investment payments.
Market Connectivity Developments
FOUR
Cross-border market initiatives between Hong Kong and the mainland continue to expand:
-
Bond Connect (Southbound): The investor base has been widened beyond banks to include securities firms, funds, insurers, and wealth managers.
-
Wealth Management Connect 2.0: Since its upgrade last year, participation has grown significantly, with over 160,000 individual investors by June and RMB 16 billion in Southbound holdings.
-
Cross-Border Payment Link: Launched in June, this connects fast payment systems in Hong Kong and the mainland. By July, more than 700,000 transactions had been processed, totaling over RMB 4 billion.
Outlook
FIVE
Chen emphasized that the GBA's integration into global markets will increasingly rely on financial innovation and cross-border connectivity. Hong Kong's role lies in providing financing solutions, facilitating RMB usage, and strengthening institutional links between mainland and international capital markets.
First, please LoginComment After ~