This file photo dated Sept 28, 2018 shows the headquarters of the People's Bank of China, the central bank, in Beijing. (PHOTO / VCG)
In an effort to enhance innovative cross-border fintech applications, China’s central bank announced on Thursday that it plans to connect financial technology regulatory tools with Hong Kong and Macao soon.
Zhang Qingsong, deputy governor of the People’s Bank of China, made the statement in his speech during a forum at Hong Kong FinTech Week.
He said that the People’s Bank of China will soon collaborate with the Hong Kong Monetary Authority and the Monetary Authority of Macao on the program. This partnership aims to connect the financial technology regulatory tools of the central bank with initiatives like the Fintech Supervisory Sandbox of the HKMA. The sandbox allows banks and tech firms to gather data and user feedback for refining their new initiatives.
Zhang Qingsong, deputy governor of the People’s Bank of China, said that Hong Kong, an international financial center, is strategically positioned for the development of financial technology and inclusive finance. Additionally, the vibrant and competitive Greater Bay Area offers further opportunities for advancing inclusive finance
He also said the moves aim to strengthen financial innovation cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area.
He said that Hong Kong, an international financial center, is strategically positioned for the development of financial technology and inclusive finance. Additionally, the vibrant and competitive Greater Bay Area offers further opportunities for advancing inclusive finance. This involves accelerating the creation of a durable and cost-effective long-term framework for the development of inclusive finance. Going forward, the central bank will continue to collaborate with other central banks and international financial institutions in the field of inclusive finance, Zhang added.
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Hong Kong is making notable strides in its ongoing endeavors to collaborate with the digital currency ecosystem of the Chinese mainland as the city is strategically tapping into fintech innovations to enhance the cross-border application of the digital yuan and promote inclusive finance.
Christopher Hui Ching-yu, Hong Kong secretary for financial services and the Treasury, addressing the same forum, said: “As a next step, subject to regulatory approval and technical readiness, the Financial Services and the Treasury Bureau welcome Octopus Cards Ltd to provide an inbound solution facilitating mainland tourists’ use of e-CNY in Hong Kong through topping up octopus cards in tourists mobile application.”
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu announces a series of major initiatives for fintech development in Hong Kong at the Main Conference of Hong Kong FinTech Week 2023 on Nov 2, 2023. (PHOTO / HKSAR GOVERNMENT)
Earlier this year, OCL partnered with the Shenzhen branch of the Bank of China to purchase e-CNY cards using Hong Kong octopus cards, via self-service card issuing machines in Shenzhen.
“OCL and Bank of China (Hong Kong) will explore new e-CNY applications,” Hui said.
“Also, BOCHK has launched e-CNY services facilitating payment in some Hong Kong retail merchants using e-CNY wallets, and offering Hong Kong customers with a convenient option to top up e-CNY wallets from their personal Hong Kong bank accounts,” Hui added.
READ MORE: Significant advances expected for e-CNY payments
According to the Shenzhen branch of the PBOC, in 2022 the Shenzhen government launched 73 events to promote e-CNY, spending 570 million yuan ($77.9 million).
