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Trade Finance

HKMA is also exploring links between the trade finance platforms of Hong Kong and China – eTradeConnect and the People’s Bank of China Trade Finance Platform – to enable importers and exporters. 

The first phase has already completed and it included a pilot run with seven banks. The second phase will begin in early 2021 with a focus on expanding the range of trade activities and financing products. 

Furthering its trade finance efforts, the HKMA co-organized a tech competition in August 2020 with the Bank for International Settlements Innovation Hub, where it received 103 solutions, some of which could be considered for actual usage.

Central Bank Digital Currency

On central banking digital currencies (CBDC), the HKMA was exploring its own opportunities in a joint research study with the Bank of Thailand (BoT). 

The two central banks aim to explore cross-border trade settlement and capital market transactions via CBDCs. Others involved include the Hong Kong Exchanges and Clearing, 19 banks and five corporates. 

In addition to bilateral gains, HKMA and BoT will look to support CBDCs of other central banks in the region and develop cross-border network by recruiting banks and corporates for participation. Findings from the joint study will be are expected to be shared in the first quarter of 2021.

Regtech Adoption

To further support easier compliance, the HKMA has developed a two-year roadmap to promote regulatory technology – 'regtech' – adoption in Hong Kong’s banking sector.

The initiative includes a published white paper and future promotional activities aimed at fostering a more diverse and interactive regtech system in the city.