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HKMA and AMCM Establish Direct Bond Market Linkage Between Hong Kong and Macao

HK

HKMA and AMCM Establish Direct Bond Market Linkage Between Hong Kong and Macao
HK

HK

HKMA and AMCM Establish Direct Bond Market Linkage Between Hong Kong and Macao

2024-09-16 15:00 Last Updated At:09-17 09:27

Establishment of direct linkage between Central Moneymarkets Unit of HKMA and Macao Central Securities Depository and Clearing Limited of AMCM

The following is issued on behalf of the Hong Kong Monetary Authority:

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 (September 16) 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 co-operation 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).

The Chief Executive of the HKMA, Mr Eddie Yue,said, "The HKMA, in recent years, has gradually established connectivity with various neighbouring financial markets to strengthen regional co-operation, 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."

The Chairman of the AMCM, Mr Benjamin Chan,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 Portuguese‑speaking 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.

About HKMA

The HKMA is Hong Kong's central banking institution. The HKMA's main functions are: (i) maintaining currency stability within the framework of the Linked Exchange Rate System; (ii) promoting the stability and integrity of the financial system, including the banking system; (iii) helping to maintain Hong Kong's status as an international financial centre, including the maintenance and development of Hong Kong's financial infrastructure; and (iv) managing the Exchange Fund.

The CMU, owned and operated by the HKMA, provides secure and efficient clearing, settlement and custodian services for Hong Kong's multi-currency debt securities and those in international markets. Over the years, the CMU has continuously established linkages with regional and international central securities depositories to expand its issuer and investor reach globally. With the launch of Bond Connect scheme in 2017, the CMU has become a pivotal financial market infrastructure serving both onshore and offshore market participants.

Please visit www.cmu.org.hkfor more information about the CMU.

About AMCM

The AMCM is Macao's central banking and integrated financial regulatory institution. Its main functions include: (i) assisting the Chief Executive of Macao SAR in formulating and implementing monetary, financial, exchange rate and insurance policies; (ii) overseeing the monetary, financial, foreign exchange and insurance markets in accordance with relevant statutory regulations to ensure their smooth operations, as well as supervising and regulating the entities operating in the respective markets; (iii) maintaining the internal stability and external solvency of the domestic currency to ensure its full convertibility; (iv) managing foreign exchange reserves and the fiscal reserve; and (v) maintaining the stability of the financial system. With the support of the Central Government, the AMCM constructed the CSD and set up the MCSD as its wholly owned subsidiary in December 2021. The MCSD is responsible for the operation of the CSD. Currently, the MCSD mainly provides securities registration, clearing, settlement, depository and other related services. The MCSD aims to provide financial-market infrastructure services to support the efficient and safe operations of the Macao bond market, which is expected to become an investment and financing platform that is widely recognised by local and international issuers, investors and other participants.

Please visit www.mcsd.com.mofor more information about the MCSD.

Source: AI-generated images

Source: AI-generated images

Speech by SJ at launch of Hong Kong International Legal Talents Training Academy

Following is the speech by the Secretary for Justice, Mr Paul Lam, SC, at the launch of the Hong Kong International Legal Talents Training Academy under Hong Kong Legal Week 2024 today (November 8):

Vice-Minister Mr Wang Zhenjiang (Vice-Minister of Justice), Commissioner Cui (Commissioner of the Ministry of Foreign Affairs of the People's Republic of China in the Hong Kong Special Administrative Region, Mr Cui Jianchun), distinguished guests, ladies and gentlemen,

Good afternoon. Today marks a milestone as we embark on a new journey to nurture legal talents in Hong Kong, China as a whole, and countries along the Belt and Road, as well as across the globe. The ceremony today has been graced by the presence of so many distinguished guests from home and abroad. I am deeply grateful to each and every one of you, witnessing together the launch of the Hong Kong International Legal Talents Training Academy.

I have to confess that I am rather excited and also emotional today. This is because the establishment of the Academy is very much my brainchild. Its gestation, from conception to delivery, lasted for more than a year. I am thrilled to see the birth of a healthy and energetic baby full of potential today.

The initiative to establish the Academy was first mentioned in the Chief Executive's 2023 Policy Address. To take forward this initiative, the Hong Kong International Legal Talents Training Office and the Hong Kong International Legal Talents Training Expert Committee were set up on October 8 this year. I am very pleased that Dr Yang Ling, a renowned scholar in international legal and dispute resolution with extensive management experience, has agreed to take up the post of Director of the Office. On the other hand, the Expert Committee consists of three advisory boards, namely the International Advisory Board, the Mainland Advisory Board and the Hong Kong Advisory Board. We are truly honoured that 17 distinguished legal experts specialising in a wide range of legal subjects from different jurisdictions have agreed to be the founding members of the Expert Committee.

The Expert Committee has just held its first Plenary Meeting yesterday, during which expert members shared their professional insights and experiences, and offered valuable advice, in different areas. Some of the eminent experts from overseas have graciously taken the time to come all the way from places as far as, for example, Europe to Hong Kong to join us at the Hong Kong Legal Week and today in the launching ceremony. I thank all of you for your unwavering support.

As foreshadowed in the Chief Executive's 2024 Policy Address announced a few weeks ago, the Hong Kong International Legal Talents Training Academy is officially launched today.

The Academy seeks to capitalise on Hong Kong's unique strengths and advantages made possible by the "one country, two systems" principle as the only bilingual common law system, using both English and Chinese, with international characteristics, which always enjoy a high reputation around the world. It will serve as a capacity building, as well as knowledge and experience sharing, platform for legal professionals in Hong Kong, the Mainland and other countries, in particular those along the Belt and Road.

Insofar as Hong Kong legal professionals are concerned, they are likely to be both teachers and students of the Academy. I am a strong believer in the saying, in Chinese "教學相長", which means when you teach someone, both the teacher and the student will benefit. Insofar as our country China is concerned, the establishment of the Academy is indeed extremely timely because, in the Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization adopted on July 18, 2024, there is a specific section on strengthening the rule of law in foreign-related affairs by, among other things, the training of legal professionals for foreign-related affairs. Turning to friends from other countries, in particular those along the modern Belt and Road, as the Belt and Road Initiative has just entered into its second decade this year, it is clearly essential for us to strengthen our legal capabilities jointly to ensure that our future co-operation will be based on a solid foundation of the rule of law.

The child is born today. I would like to take this opportunity to invite you to bring him up together. Although this child's genetic parent is Hong Kong, he is meant to be a child belonging not just to Hong Kong, but also China as a whole and friends around the world. It is in our common interest to see this child growing up wisely, strongly and happily.

Thank you very much.

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