Hong Kong and Macau launch direct linkage for bond markets

The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) announced yesterday that they have launched a direct linkage between their respective bond market infrastructures.

This initiative aims to enhance cross-border investment opportunities and bolster the development of bond markets in both regions.

The joint announcement follows months of close cooperation between the HKMA and AMCM to prepare for business arrangements and operational procedures.

The direct linkage will provide a cross-border investment and financing channel, enabling investors from both markets to participate easily and efficiently in each other’s bond markets.

Eddie Yue, the HKMA’s chief executive, emphasized the significance of this development, stating that it enhances Hong Kong’s status as an international financial center. The direct linkage showcases Hong Kong’s role as a ‘super-connector’ and represents a significant step towards developing the CMU into an international CSD in Asia.”

Benjamin Chan, Chairman of the AMCM, emphasized the significance of this milestone for Macau’s financial services sector.

“The official launch of the direct linkage between the bond markets of Macau and Hong Kong achieved the first connectivity of Macau’s bond market infrastructure, which was established with a CSD located outside Macau. This will provide international investors, including those from Portuguese-speaking countries, with a convenient channel to participate in the bond markets of Macau and Hong Kong, further strengthening Macau’s function as the financial services platform serving China and Portuguese-speaking countries.”

Victoria Chan