UAE central bank joins HK debt depository network to deepen financial co-operation and market connectivity

The Central Bank of the United Arab Emirates has formally joined the Central Moneymarkets Unit - Hong Kong's core central securities depository for debt securities on Thursday, marking a major step forward in advancing market connectivity and deepening financial integration between the two regions.

This provides the CBUAE and investors in the United Arab Emirates direct and cost-effective access to Chinese Mainland's capital markets and financial assets, leveraging Hong Kong's established financial infrastructure.

The Governor of the CBUAE, H.E. Khaled Mohamed Balama said, " The CBUAE's membership in the Central Moneymarkets Unit enables access to Asian capital market and deeper engagement with other global financial centres, which supports diversifying investment opportunities for market participants in the United Arab Emirates, and reinforcing the country's role as a leading international capital market hub. "

The collaboration underscores Hong Kong's position as a leading offshore yuan business hub, and a premier gateway for international investors to tap into the broader China and Asia markets, said Hong Kong Monetary Authority chief executive Eddie Yue Wai-man.

In addition, the CBUAE and the HKMA conducted in-depth discussions covering several key areas, including cross-border debt capital market connectivity, developments in digital assets, tokenisation, and central bank digital currency, as well as the development of regulatory frameworks for stablecoins and supply chain financing.