Mainland China, Hong Kong and Macau eye closer cooperation to boost fintech innovation in Greater Bay Area
- The PBOC, HKMA and the Monetary Authority of Macau plan to link up their fintech regulatory frameworks to promote innovation in the Greater Bay Area
- ‘Arrangement will provide a more friendly supervisory environment for cross-boundary fintech development,’ HKMA CEO Eddie Yue says
Financial regulators from mainland China, Hong Kong and Macau have proposed to undertake stronger collaboration between the three jurisdictions to promote fintech in the Greater Bay Area.
The People’s Bank of China (PBOC), the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macau plan to link up their fintech regulatory frameworks to support the goal.
The three authorities will jointly facilitate “high quality financial development” in the Greater Bay Area, according to a memorandum of understanding (MOU) signed at the annual Financial Street Forum in Beijing.
“This arrangement will provide a more friendly supervisory environment for cross-boundary fintech developments,” HKMA CEO Eddie Yue said in a statement on Thursday. “The HKMA will continue to seize the opportunities in the Greater Bay Area and work closely with the mainland and Macau in promoting the further development of fintech innovation in the region.”
The development comes despite Beijing’s tightening control over its financial system. The country’s top leadership pledged to “comprehensively enhance the Communist Party’s leadership in financial work” at last month’s central financial work conference, which was renamed from the national financial work conference to highlight direct supervision by the party.
However, the governing model of “one country two systems” provides a testing ground for cross-boundary financial innovation, with mainland China and Hong Kong signing a similar MOU in October, vowing to improve fintech supervisory exchanges.