In a bid to bolster financial cooperation between Hong Kong and Mainland China, the Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) have reached an agreement to implement six policy measures. Both parties have expressed their willingness to explore further collaborative opportunities in the future.
According to an HKMA press release, the first measure involves accepting RMB bonds issued onshore by the Ministry of Finance of the People’s Republic of China and the policy banks of the People’s Republic of China as eligible collateral for HKMA’s RMB Liquidity Facility. The second measure is designed to open up the onshore repurchase agreement market to all foreign institutional investors, including those currently having access to the China Interbank Bond Market.
The HKMA press release also detailed that the third measure pertains to amendments being made to the Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area, which was launched in 2021. As part of the fourth measure, procedures related to remittances for property purchased by Hong Kong and Macao residents in this area will be implemented.
The fifth and sixth policy measures outlined in the HKMA press release call for promoting cooperation on cross-boundary credit referencing and expanding pilots of cross-boundary e-CNY, a Central Bank Digital Currency issued by PBoC, in Hong Kong.
The HKMA press release quoted Chief Executive Eddie Yue stating that these six measures are a result of a concerted effort between HKMA, PBoC and other financial regulatory authorities. "They will promote further opening up of Mainland's financial market, strengthen Hong Kong's status as an international financial centre and offshore RMB business hub, and foster closer connections within GBA," said Yue. He added that they would continue working closely with these entities and industry players to ensure timely and smooth implementation of these measures while exploring further enhancements.