Hong Kong Monetary Authority hosts Cargox Solution Day to promote regional trade data interconnection

The Zhitong Finance App learned that on October 5, the Hong Kong Monetary Authority (HKMA) successfully hosted the Cargox Solution Day to allow key stakeholders in the freight logistics and trade data ecosystem to exchange opinions and showcase innovative solutions to improve regional trade data connectivity under the Cargox Project Pilot Program.

The theme of the Solution Day was “Building Hong Kong's Local and Regional Trade Data Interconnection Cargox Pilot to Create a New World of Trade Finance”, which attracted more than 300 industry participants from banks, freight logistics and trade data providers, government agencies and “Business Data Connect” partner organizations. The event featured a number of keynote speeches, panel discussions and program presentations, focusing on how to strengthen the connectivity of trade data between Hong Kong and major trading partners, including mainland China and ASEAN economies, and the interface of “Business Data Connect” with the government's major freight logistics and trade data platforms.

One of the highlights of Cargox Solution Day was the signing of a memorandum of understanding between the HKMA and PAA Digital Trade Alliance (PAA) to promote the digitalization of trade finance. The two sides will launch innovative projects to enhance the connectivity of freight logistics and trade data between Hong Kong and PAA member economies, thereby stimulating innovation in data-based financial services and increasing trade financing opportunities within the region.

At the same time, the Hong Kong Monetary Authority also shared the progress of the Cargox Project Pilot Program in improving connectivity with major trade corridors. Among them, the HKMA cooperated with the Shanghai Data Bureau to successfully link “Commercial Data Connect” with the digital trade platform built by the Shanghai Data Bureau. Through this cooperation called “Goods Trade Connect”, the first batch of five pilot banks were able to take the lead in obtaining and using trade customs data from the Yangtze River Delta region to facilitate trade financing processes such as verifying the authenticity of trade and carrying out due diligence checks on trade partners, so that Hong Kong enterprises engaged in onshore and offshore trade can withdraw loans more quickly. The pilot project has so far led to 10 trade finance approvals, with a loan amount of HK$180 million. The HKMA will seek to extend this successful model to other mainland Chinese provinces and cities in the next stage of development.

Building on the encouraging development of cooperation with the Shanghai Data Bureau and PAA, the HKMA will continue to play the role of Hong Kong's supercontact through Cargox to enhance trade data connectivity with major corridors such as mainland China and ASEAN. The ultimate goal is to improve the transparency of cross-border trade transactions, create more trade finance opportunities, and support the business growth of SMEs in the region.

Li Dazhi, Vice President of the Hong Kong Monetary Authority, said that today's Cargox Solution Day provides an important platform to show how the Cargox Project Pilot Program can turn strategic proposals into concrete actions. The Cargox pilot project has made exciting progress. Based on this, the HKMA signed a memorandum of understanding with PAA, setting an important milestone in an effort to create regional trade data interconnection with ASEAN and other economies, and bring more convenient trade finance for SMEs. With the “Business Data Connect” data infrastructure, Cargox will continue to expand from the local to the regional level, build a more efficient and inclusive cross-border digital trade ecosystem, support the growth of SMEs, and promote the smooth flow of international trade.

PAA Chairman Tan Sri Saena Abidine said that the signing of a memorandum of understanding with the HKMA is an important milestone in promoting regional cross-border trade financing. By connecting PAA's solid regional network with Hong Kong's advanced “Business Data Connect” infrastructure, it will further unlock the potential of data-driven finance, reduce long-standing information and financing barriers to cross-border trade, and expand opportunities for SMEs in ASEAN and neighboring economies. PAA looks forward to working with the HKMA to build a more inclusive, resilient, and highly digital regional trade ecosystem.