HKEX Invests in Financial Infrastructure to Boost Market
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Hong Kong Exchanges and Clearing, HKEX, has announced a significant investment in the Hong Kong Monetary Authority's unit, CMU OmniClear Holdings. This investment amounts to as much as HK$455 million, equivalent to US$58.5 million, for a 20 percent stake in the subsidiary.
The remaining 80 percent will continue to be held by the HKMA's Exchange Fund. CMU OmniClear operates the Central Moneymarkets Unit, a crucial central securities depository that provides essential clearing, settlement, and custody services for debt securities in Hong Kong.
This investment is designed to enhance the city's financial market infrastructure, which is vital for maintaining Hong Kong's status as a leading global financial hub. The collaboration between HKEX and HKMA aims to create favorable conditions for accelerating the development of Hong Kong's financial markets, particularly in the fixed income and currencies sector.
Financial Secretary Paul Chan Mo-po emphasized that this partnership is expected to attract more international investors to allocate funds towards Chinese assets. HKMA Chief Executive Eddie Yue highlighted that this strategic alliance lays a strong foundation for transforming CMU into a multi-asset-class platform, which is crucial for connecting Chinese and global bond markets within a unified network.
This initiative is part of a larger effort to advance the long-term development of Hong Kong's financial market infrastructure, aiming to position the city as a major player in Asia's financial landscape.
The signing ceremony for this agreement marks a significant milestone in the evolution of Hong Kong's financial ecosystem, reinforcing the commitment of HKEX and HKMA to further enhance the efficiency and attractiveness of the market.
Such investments are seen as critical for ensuring that Hong Kong remains competitive in the fast-evolving global financial environment. Sources indicate that this move not only reinforces local market structures but also aligns with broader ambitions to fortify Hong Kong's role in regional and global finance.