The Hong Kong Monetary Authority (HKMA) announced June 26th that it has signed a Fintech agreement with the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), “to enhance collaboration between the two authorities with a view to encouraging and enabling innovation in financial services…and supporting innovative financial businesses in expanding to each other’s jurisdictions.”
Henceforth, the two bodies, “will collaborate on referring innovative businesses, information sharing, and joint innovation projects.”
The release states that the HKMA is “particularly pleased” to begin negotiating the creation of a distributed ledger that may help expedite cross-border trade between the two economic powerhouses:
“…(A) key priority… (is) to start a dialogue with FSRA on the opportunity to build a cross-border trade finance network using distributed ledger technology.”
According to its website, the HKMA coordinates, “monetary policy…determined by the Financial Secretary (of Hong Kong)..for maintaining the stability and integrity of the monetary system of Hong Kong.”
The Chief Fintech Officer of the HKMA, Nelson Chow, said, “ADGM’s commitment to the pursuit of innovation resonates strongly with Hong Kong’s ambitions,” and said an enshrined relationship between the between the HKMA and the FSRA, “would strengthen the two authorities in their respective roles and initiatives in fintech.”
The ADBM bills itself as, “a broad-based international financial centre for local, regional and international institutions…(that) ensure(s) that our business-friendly environment operates in line with international best practice that are recognised by major financial centres across the world”:
“In collaboration with other International Financial Centres, global institutions and regulators, Abu Dhabi Global Market develops and supports member institutions with the regulatory framework, legal jurisdiction and attractive business environment they need for sustainable business growth.”
FSRA Chief Executive, Richard Teng said, “Hong Kong has remained a long-term strategic and economic partner of Abu Dhabi and the United Arab Emirates.”
According to the website Global Media Insight, about 200 000 Chinese expats now reside in the UAE.