Hong Kong, Macau establish direct link for bond clearing and settlement

Investors in Macao and Hong Kong will benefit from the arrangement.

Hong Kong and Macau’s central banks are establishing a direct linkage between their central moneymarkets unit (CMU) and central securities depository (CSD).

Under this arrangement, investors in Hong Kong, through their accounts at the Hong Kong Monetary Authority’s (HKMA) CMU, will be able to clear, settle and hold bonds lodged with the Monetary Authority of Macao’s CSD.

Investors in Macau will also be able to clear, settle, and hold bonds lodged with the CMU through their CSD accounts.

The official launch date and detailed arrangements for the direct linkage will be announced in due course, the HKMA said in a statement posted on its website.