Hong Kong central bank chief eyes cooperation with mainland to support cross-border finance

Hong Kong’s de facto central bank will work with mainland regulators to implement measures to meet rising demand for cross-border financial services and stocks and bond trading, according to its chief executive.

The joint effort to facilitate cross-border transactions and trading of financial products will help economic integration between Hong Kong and its neighbouring cities, said Norman Chan Tak-lam, head of the Hong Kong Monetary Authority, during a visit to the capital.

“We will strengthen our cooperation with the People’s Bank of China and State Administration of Foreign Exchange to launch measures to make things easier for people crossing the border for work and leisure,” he told reporters. The associated transport and infrastructure requirements will create more demand for cross-border financial transactions, he said, adding: “We have not discussed specific details.”

He was responding to a query about whether he has exchanged ideas with his mainland counterparts on measures to make cross-border financial transactions easier for people living in the so-called Greater Bay Area.

The region comprises Hong Kong, Macau and seven cities neighbouring the Pearl River Delta in Guangdong province, where Beijing is pushing for greater economic integration.

“Many Hongkongers cross the border to have business meetings, shop and have holidays, as do our neighbours across the border in Hong Kong,” Chan said. “The demand for cross-border transactions and financial services will only increase as more and more regional transportation facilities and other infrastructure are built.

“Hong Kong has a geographical advantage for providing financial services in the area and we can consider doing trials on various measures.”