HONG Kong's first central clearing system for locally denominated debt is launching in eight weeks with 11 member companies already signed up.
The creation of the Central Moneymarkets Unit Service (CMU Service), due to go live on January 31, was formally announced yesterday by Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong.
Speaking at the Asia Pacific Issuers and Investors Forum, at the Grand Hyatt, Mr Yam said: ''The CMU Service will offer an efficient, safe and convenient clearing system which will go a long way to reducing transaction costs and settlement risk.'' In conjunction with the CMU service announcement, Mr Yam confirmed the authority had obtained agreement from the Chinese that the Exchange Fund debt programmes could be run on a continuous basis even though the money borrowed is for repayment after the reversion of sovereignty.
''So the 1997 hurdle has been overcome,'' he said.
''The Exchange Fund debt programmes are on the 'through train'.'' At the CMU Service, the 11 companies with commitments to join include the Bank of China (Hong Kong Branch), Jardine Fleming Bank, LTCB Asia, Oakreed Financial Services and Sanwa International Finance.
Also included are Schroders Asia, Standard Chartered Bank, Standard Chartered Asia, Hongkong and Shanghai Banking Corp, Union Bank of Switzerland and Wardley.