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The 25th Anniversary of the Return | Future Rio Tinto Financial Infrastructure Yu Weiwen of the Financial Authority: Make good use of technology for financial inclusion

2022-06-12T23:14:18.959Z


On the 25th anniversary of Hong Kong's return to the motherland, Hong Kong's financial industry has developed rapidly. In addition to doing well in its own business, it has also kept pace with the times and continued to innovate. It has continued to seek breakthroughs and leadership in many new fields. President of the Monetary Authority Yu Weiwen accepts the "Hong Kong 01"


On the 25th anniversary of Hong Kong's return to the motherland, Hong Kong's financial industry has developed rapidly. In addition to doing well in its own business, it has also kept pace with the times and continued to innovate. It has continued to seek breakthroughs and leadership in many new fields.

In an interview with Hong Kong 01 and other media, the President of the Monetary Authority Yu Weiwen explained the key tasks of the Monetary Authority in the future, including how to embrace opportunities in the Mainland, make good use of financial technology, and green finance, especially in terms of technology!


President Yu also explained the progress of the digital Hong Kong dollar, reiterating that this is a long-term project, emphasizing that the public does not need to expect the digital Hong Kong dollar application to be launched in a short time.


Since Hong Kong's return to the motherland, it has been playing the role of a "super-connector" between the mainland and the world. Before seizing this opportunity, Hong Kong naturally needs to improve its own facilities and infrastructure to meet the needs of the market.

In an interview, the President of the HKMA, Yu Weiwen, gave a detailed account of the future development direction and projects. Among them, the technology development link has short, medium and long-term project preparations.

Yu Weiwen hopes to try out the scenario of personal cross-border remittance by issuing a central bank digital currency, such as reducing the cost and time of remittance by foreign workers such as domestic helpers.

(Photo by Li Zetong)

Trial CBDC to help foreign domestic helpers send money faster and cheaper

First of all, in terms of issuing Central Bank Digital Currency (CBDC), Yu Weiwen said that in the past, he has been working with three central banks, including the People's Bank of China, the Bank of Thailand, and the Central Bank of the United Arab Emirates, to jointly participate in the "Multiple Central Bank Digital Currency Cross-border Network". (m-CBDC Bridge).

The project, coordinated by the Bank for International Settlements (BSI), aims to issue a central bank digital currency through Distributed Ledger Technology (DLT) to make cross-border payments cheaper and faster.

Yu Weiwen said frankly that cross-border payments around the world are expensive, time-consuming and lack transparency.

At present, the m-CBDC Bridge project is piloted with 19 commercial banks, and 15 scenarios are tested in real situations, including major trade settlements. The test can use CBDC to conduct real transactions as usual.

In addition to trade settlement, Yu Weiwen mentioned that he hoped that the next test scenario would be Migrant Remittance.

"There are many people in Hong Kong who come to work in Hong Kong, especially domestic helpers. Whether they are sending remittances to the Philippines or Indonesia, the cost is also a bit expensive." If the personal remittance can be successfully piloted in the next stage, Yu believes that it will benefit other people. Few, not only foreigners from Hong Kong, but also foreign workers from other countries.

In addition to studying how CBDC can benefit many foreign domestic helpers to return home, the HKMA also has some measures aimed at small and medium enterprises, making it easier for them to obtain loans and lower interest costs.

The first batch of virtual banks in Hong Kong was officially put into service in 2020. It has been more than two years since then. The HKMA said that it will conduct a review in due course, but there is no plan to launch a new round of licensing.

(Photo by Chen Jiabi)

CDI helps small and medium enterprises to actively participate in the virtual bank loan

The HKMA started the trial implementation of the "Commercial Data Connect" (CDI) last year. The purpose is to connect banks and data providers to the platform. When banks want to approve loans to SMEs, they can obtain multiple data through the platform and use big data to approve loans. to faster speed and lower interest.

Yu Weiwen shared the data about the trial. In the trial phase, 8 groups of banks and data providers have been cooperating one-to-one. From November last year to May this year, a total of 800 loans were approved through the trial, involving a total of 1.4 billion Yuan.

The details are currently under review. If more data providers participate, I believe it will help SMEs in financing. In the future, the platform will not be one-to-one, but "One to Any". It is expected that the application will be officially launched by the end of this year.

He added that in this area, virtual banks are more interested in participating in commercial data communication, because the characteristics of virtual banks are technology-driven, so commercial data communication is catering to the development of virtual banks.

When it comes to the development of virtual banks, Yu believes that the first eight virtual banks have performed well, and has noticed the launch of many innovative products and services, "In terms of inclusive finance, many virtual banks can do it, especially serving small and medium-sized enterprises. There are several virtual banks that use data to approve loans to SMEs.” The next challenge is how to make profits. The HKMA will pay attention to the development of virtual banks and review them in due course, but there is no plan to launch a new round of licensing.

Yu Weiwen, president of the HKMA, said that the HKMA plans to comprehensively upgrade the central settlement system for debt instruments in 2025, and hopes to market and commercialize it.

(Photo by Yu Junliang)

Digital Hong Kong dollar research will take time to explain the situation in the short term

In the future, the key work of the HKMA will not only improve the service quality of the financial industry in Hong Kong, but also upgrade its own infrastructure to meet the opportunities in the Mainland.

Yu Weiming said that the HKMA plans to upgrade the Central Clearing and Settlement System for Debt Instruments (CMU System) established in 1990 to make the system more market-oriented and commercialized, and to enhance its status as an international bond settlement platform.

Since the CMU system was originally a platform serving the issuance of foreign exchange fund bills, it gradually evolved into a bond depository platform. Yu Weiwen said that with the opportunity brought by the development of Bond Connect, the CMU system is expected to develop rapidly through Bond Connect and gradually become the Asian region. The largest bond settlement platform in China.

Until 2025, the HKMA plans to greatly upgrade the CMU platform to make it easier for participants to perform settlement and more comprehensive collateral management, and upgrade the system to 24-hour operation to serve users in different time zones around the world.

As for the discussion paper on the "Digital Hong Kong Dollar" announced by the HKMA in April this year, people from all walks of life are invited to express their opinions.

Yu Weiwen explained the progress of the project, saying that the research is still in progress, some public comments have been collected, and the preliminary research results will be announced later.

However, Yu Weiwen emphasized that the digital Hong Kong dollar is always a long-term project. Referring to overseas experience, for example, the UK is also expected to launch in 2030 at the earliest. Therefore, he appeals to the market not to expect the launch of the digital Hong Kong dollar application in the short term.

The 25th Anniversary of the Return | The HKMA Yu Weiwen: Hong Kong's financial industry is indestructible, and the "fundamental foundation is strong enough" for the 25th anniversary of the return | Stable property prices and counter-cyclical can reduce the heat?

HKMA: This move will not help citizens get on the bus

Source: hk1

All news articles on 2022-06-12

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