Hong Kong Monetary Authority: Central Clearing System for Debt Instruments Launches New Service at the End of the Year

Zhitong Finance App learned that on September 23, Yu Weiwen, CEO of the Hong Kong Monetary Authority, said in his speech at the Treasury Market Summit that the Hong Kong stock remittance market is mature, and digital finance is rapidly emerging. The Central Debt Instrument Settlement System (CMU) will launch a new service by the end of this year. At that time, it will provide 24-hour, real-time settlement on the chain, support the CyberHong Kong Dollar and Central Bank Digital Currency (CBDC). It will also study the acceptance of tokenized deposits and regulated stablecoins for settlement on the platform.

Yu Weiwen pointed out that in the past 20 years, the compound annual growth rate of the Hong Kong bond market has reached 20%. Last year, about a quarter of the number of international bonds issued in Asia was carried out in Hong Kong. The strong growth mainly came from Dim Sum bonds. As the financial situation of the Hong Kong dollar became more favorable, there was also a significant increase in Hong Kong dollar-denominated cloud bonds. In the first half of the year, the number of cloud bonds issued by global institutions increased 64% over the same period last year.

Meanwhile, Hong Kong has become a leading global hub for issuing tokenized bonds, accounting for half of the world's digital bonds issued in the first half of this year. The Hong Kong Monetary Authority will support the government's regular issuance of digital bonds, promote deeper integration with digital currencies, and encourage wider application in the industry.

He also mentioned that the Hong Kong Monetary Authority will conduct tests on Exchange Fund note tokens, and the measures will help the banking industry manage balance sheets more efficiently.

As Hong Kong continues to develop digital finance, Yu Weiwen said that the market will be able to launch more innovative services to improve transaction efficiency and transparency. The Hong Kong Monetary Authority aims to make market services more diverse and more liquid, and most importantly, participants work together.