Hong Kong and Shanghai Sign MOU to Enhance Digital Cargo Trade and Finance Cooperation

Hong Kong Monetary Authority, Shanghai Data Bureau, and National Technology Innovation Center for Blockchain sign MOU to strengthen Shanghai-Hong Kong co-operation in digitised cargo trade and finance

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

The Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau (SDB), and the National Technology Innovation Center for Blockchain (NTICBC) announced today (March 2) that they have jointly signed the Memorandum of Understanding between Shanghai and Hong Kong on Digitised Cargo Trade and Finance Cooperation (the MOU). This aims to deepen the collaboration between Shanghai and Hong Kong in areas of digitised cargo trade and finance. The collaboration leverages the unique advantages of Hong Kong as a "super connector" and "super value-adder", with its connections to both the Chinese Mainland and the world, to support Shanghai's integration with the international data ecosystem through Hong Kong.

Under the MOU, the HKMA, the SDB, and the NTICBC will jointly conduct research on digital technology and its applications, and promote the innovative application of the technology in areas such as cargo trade and finance. The parties will work together to examine the use of digital technology to develop a "cross-border platform". Through this platform, cross-border financial co-operation and the use of electronic bills of lading (eBL) will be explored under Project Ensemble, while the facilitation of trade finance through cargo and trade data will be studied via connection with the Commercial Data Interchange (CDI) and CargoX.

Deputy Chief Executive of the HKMA Mr Howard Leesaid, "We are pleased to sign the MOU with the SDB and the NTICBC. This marks an important milestone in the collaboration on financial innovation between Shanghai and Hong Kong, and underscores the joint commitment to strengthen the collaboration between the two jurisdictions in areas of digitised cargo trade and finance. We look forward to driving innovative application of digital technology in areas such as cargo trade and finance, promoting joint achievements in digital innovation, exploring a digital infrastructure that links Shanghai and Hong Kong, promoting digitalisation of trade finance, as well as facilitating the integration of cargo and trade data in the Chinese Mainland with the international data ecosystem through Hong Kong."

The Director of SDB, Dr Shao Jun,said, "The joint signing of the MOU with the HKMA and the NTICBC marks a significant step towards deepening co-operation between Shanghai and Hong Kong on data. We remain committed to data-powered and innovation-driven development, striving to establish a secure, efficient, and open digital infrastructure. This collaboration will fully leverage Shanghai's strengths in data integration and commercialisation, working in tandem with Hong Kong to realise innovative applications in digitised cargo trade, and finance. We also look forward to showcasing a range of innovation outcomes through close co-operation, thereby injecting new momentum into Shanghai-Hong Kong digital collaboration."

Hong Kong Monetary Authority, Shanghai Data Bureau, and National Technology Innovation Center for Blockchain sign MOU to strengthen Shanghai-Hong Kong co-operation in digitised cargo trade and finance Source: HKSAR Government Press Releases

Hong Kong and Kyrgyz Republic enter into tax pact

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, had an online bilateral meeting today (March 2) with the Minister of Economy and Commerce of the Kyrgyz Republic, Mr Bakyt Tolomushevich Sydykov, and signed on behalf of the Hong Kong Special Administrative Region (HKSAR) Government a comprehensive avoidance of double taxation agreement (CDTA) with the Government of the Kyrgyz Republic.

Mr Hui said, "As stated in the newly announced 2026-27 Budget, we will further expand our CDTA network. This CDTA with the Kyrgyz Republic is the 56th that Hong Kong has concluded, signifying the ongoing achievements of the HKSAR Government's continuous efforts. We will continue to actively seek to sign CDTAs with more tax jurisdictions to enhance the attractiveness of Hong Kong as a business and investment hub and consolidate the city's status as an international economic and trade centre."

At the meeting, Mr Hui presented to Mr Sydykov the advantages of Hong Kong as an international financial centre and its latest developments, including the efforts made to establish Hong Kong as a regional gold reserve hub.

Mr Hui added, "This CDTA sets out the allocation of taxing rights between Hong Kong and the Kyrgyz Republic, which will enable investors to better assess their potential tax liabilities from cross-border economic activities and avoid double taxation. This will create a more attractive business environment for promoting bilateral trade and investment."

In accordance with this CDTA, any tax paid by Hong Kong residents in the Kyrgyz Republic will be allowed as a credit against the tax payable in Hong Kong in respect of the same income in accordance with the provisions of the Inland Revenue Ordinance (Cap. 112) (IRO). In addition, if a Hong Kong company holds at least 20 per cent of the share capital of the dividend-paying company, the Kyrgyz Republic's withholding tax rate on such dividends, currently at up to 10 per cent, will be reduced to 5 per cent; while the maximum withholding tax rate on interest and royalties received by Hong Kong residents, currently at 10 per cent, will be reduced to 8 per cent.

This CDTA will come into force after completion of ratification procedures by both sides. In Hong Kong, the Chief Executive in Council will make an order under the IRO, which will be tabled at the Legislative Council for negative vetting. Details of the CDTA are available on the Inland Revenue Department website.

Hong Kong and Kyrgyz Republic enter into tax pact Source: HKSAR Government Press Releases

Hong Kong and Kyrgyz Republic enter into tax pact Source: HKSAR Government Press Releases

Hong Kong and Kyrgyz Republic enter into tax pact Source: HKSAR Government Press Releases