The Hong Kong Monetary Authority has established an expert panel on Project CargoX to enhance the digital ecosystem for trade finance by harnessing the power of cargo data.
Riding on HKMA's Commercial Data Interchange, Project CargoX is a multiyear public-private collaboration, focusing on leveraging cargo data to streamline and enhance trade finance processes – developing digital solutions to improve accessibility to trade finance for small and medium-sized enterprises, the city's de facto central bank said in a statement on Monday.
The project will explore connections with international data partners to facilitate the trade financing use case for banks in Hong Kong.
An expert panel comprising industry experts and key stakeholders from cargo data providers, trade associations, banks, credit reference agencies and government agencies has been established to achieve these objectives, HKMA said.
The panel will formulate a road map for digitizing cargo data, encompassing sea, road and air transportation data, and integrating relevant cargo data sources across jurisdictions with CDI by the end of 2025.
With the guidance and recommendation from the panel, HKMA will conduct proof-of-concept studies and develop new solutions with strategic partners – such as the Airport Authority Hong Kong and the Transport and Logistics Bureau as well as pilot banks – to improve digital trade finance through the use of cargo data and CDI in 2025 and 2026, the statement said.
“Leveraging cargo data and our next-generation CDI data infrastructure, CargoX will help resolve some long-standing pain points in trade finance for banks, ultimately boosting efficiency and driving industry-wide innovation," said Eddie Yue Wai-man, HKMA chief executive.
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