Macau and HK link up bond markets

The Hong Kong Monetary Authority and the Monetary Authority of Macao have jointly launched a direct linkage for bonds between the two SARs, with the aim to promote the development of the bond markets in both regions.

The linkage directly connects the Central Moneymarkets Unit operated by CMU OmniClear, a wholly-owned subsidiary of the Exchange Fund, and the central securities depository operated by AMCM’s wholly-owned subsidiary Macao Central Securities Depository and Clearing, the two regulators said in a joint statement.

The connection between bond market infrastructures will provide a cross-border investment and financing channel, enabling investors from one market to participate in the other with greater ease and efficiency, the statement said, adding that it also signifies a new milestone in financial cooperation, leveraging the strengths of both regions and demonstrating the synergistic development of the Greater Bay Area.

“The direct linkage showcases Hong Kong’s role as a ‘super-connector’ and represents a major step toward developing the CMU into an international CSD in Asia,” said HKMA chief executive Eddie Yue Wai-man.

Benjamin Chan Sau-san, chairman of the AMCM, said the connection will “provide international investors, including those from Portuguese-speaking countries, with a convenient channel to participate in the bond markets of Macau and Hong Kong, further strengthening Macau’s function as the financial services platform serving China and Portuguese speaking countries.”

STAFF REPORTER