Hong Kong and Macau Connect Bond Markets to Boost Debt Finance Hub: A Strategic Move Towards Financial Synergy in the Greater Bay Area

The bond market of Hong Kong will be connected with Macau's to form a more extensive and comprehensive hub for debt funding. The Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) is set to be integrated with the Macau Central Securities Depository and Clearing.

The exact date and specific plans for the direct connection will be revealed in time, as stated in the announcement. Macau's bond market is worth US$22 billion, in comparison, Hong Kong's market dwarfs it nearly 20 times over with a value of US$421 billion, as per Bloomberg's statistics.

Promoting links between the bond market systems in Hong Kong and Macau is a significant representation of the cooperative growth of the financial markets in the Greater Bay Area. This will transform CMU into an international hub for securities storage in Asia, utilizing its function as a major link," stated Eddie Yue Wai-man, the CEO of HKMA.

The government of Macau's special administrative region has been actively working towards expanding its economy and promoting diversity in its financial landscape. The bond market has been identified as a critical foundation for this process, as stated by Benjamin Chan, the head of Macau's Monetary Authority (AMCM).