HKMA hosts CargoX Solution Day to promote regional trade data connectivity
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) today (October 5) successfully organised the CargoX Solution Day. The event served as a platform for key stakeholders in the cargo and trade data ecosystem to exchange insights and showcase the innovative solutions in enhancing trade data connectivity to regional levels under the CargoX Pilot Programme.
Themed "From local to regional trade data connectivity: shaping the future of trade finance through innovative CargoX pilots", the Solution Day attracted over 300 industry professionals from banks, cargo and trade data providers, government agencies and partners of Commercial Data Interchange (CDI). The event featured keynote speeches, panel discussions and solution presentations, focusing on strengthening trade data connectivity with Hong Kong's key trading partners, such as the Chinese Mainland and the Association of Southeast Asian Nations (ASEAN) economies, as well as integrating CDI with key government cargo and trade data platforms.
A highlight of the CargoX Solution Day was the signing of a Memorandum of Understanding (MoU) between the HKMA and the PAA Digital Trade Alliance (PAA) (Note 1)to promote trade finance digitalisation. The two parties will commence joint innovation projects on enhancing cargo and trade data connectivity between Hong Kong and PAA member economies, thereby catalysing data-driven innovation in financial services and enhancing trade finance availability in the region.
During the Solution Day, the HKMA also shared results achieved under the CargoX Pilot Programme, particularly its progress in enhancing connectivity with key trade corridors. In collaboration with the Shanghai Data Bureau (SDB), the HKMA has successfully established a link-up between CDI and a digital trade platform developed by the SDB. Known as "CargoX Connect", this collaboration has enabled five pilot banks (Note 2)to access and utilise trade declaration data from the Yangtze River Delta region, serving as the first pilot cohort. This development facilitates various trade finance processes, such as trade verification and due diligence on trade counterparts, resulting in faster loan drawdowns for Hong Kong businesses engaging in both onshore and offshore trade. To date, this pilot has enabled the approval of ten trade finance loans amounting to HK$180 million. The HKMA intends to extend this successful model to other provinces and cities in the Chinese Mainland as the next phase of development.
Building on these encouraging developments in collaboration with the SDB and the PAA, through CargoX, the HKMA will continue to leverage Hong Kong's role as a super-connector to strengthen trade data connectivity along key corridors, including the Chinese Mainland and ASEAN. The ultimate goal is to enhance the transparency of cross-border trade transactions, thereby unlocking trade finance opportunities and supporting the growth of small and medium-sized enterprises (SMEs) in the region.
Deputy Chief Executive of the HKMAMr Howard Leesaid, "Today's CargoX Solution Day serves as a vital platform to showcase how the CargoX Pilot Programme is translating strategic recommendations into tangible actions. Building on the encouraging progress of the CargoX pilot projects, the signing of the MoU with the PAA marks a significant milestone in our endeavour to enhance regional trade data connectivity, including ASEAN economies, for more streamlined SME trade financing. By leveraging our CDI data infrastructure, CargoX will continue to expand from local to regional levels, building a more efficient and inclusive digital trade ecosystem across borders. This ultimately contributes to SME growth and fosters seamless international trade."
The Chair of the PAA, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir,said, "The signing of this MoU with the HKMA marks a transformative step forward for cross-border trade finance in the region. By seamlessly bridging the PAA's robust regional network with Hong Kong's cutting-edge CDI infrastructure, we are unlocking the true power of data-driven finance. Together, we will eliminate the traditional frictions in international trade, giving SMEs across ASEAN and neighbouring economies unprecedented access to capital. We are excited to co-create a more inclusive, resilient, and fully digitised regional trade ecosystem."
Note 1: The PAA is a global alliance comprising trade single window operators and e-commerce service providers from 15 economies, including ASEAN member states.
Note 2: These pilot banks include Bank of China (Hong Kong), Hang Seng Bank, The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia) and Standard Chartered Bank (Hong Kong).
The Hong Kong Monetary Authority (HKMA) today (October 5) successfully organised the Cargox Solution Day. Photo shows Deputy Chief Executive of the HKMA Mr Howard Lee (centre); Deputy Director of the Shanghai Data Bureau Mr Weng Yicong (fifth right); the Chair of the PAA Digital Trade Alliance, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir (fifth left); the Executive Director (Financial Infrastructure) of the HKMA, Mr Nelson Chow (second left) and other key partners in the digital trade ecosystem exchange insights on enhancing cargo and trade data connectivity at the Cargox Solution Day. Source: HKSAR Government Press Releases
The Hong Kong Monetary Authority (HKMA) today (October 5) successfully organised the Cargox Solution Day. Photo shows Deputy Chief Executive of the HKMA Mr Howard Lee (left), and the Chair of the PAA Digital Trade Alliance, Tan Sri Syed Zainal Abidin Syed Mohamed Tahir (right), signing the Memorandum of Understanding to promote digital trade and trade finance digitalisation. Source: HKSAR Government Press Releases
The Hong Kong Monetary Authority (HKMA) today (October 5) successfully organised the CargoX Solution Day. Photo shows Deputy Chief Executive of the HKMA Mr Howard Lee delivering opening remarks at the CargoX Solution Day. Source: HKSAR Government Press Releases
