The Hong Kong Monetary Authority on Monday rolled out 20 recommendations under Project CargoX — a multi-year public-private collaboration program — to galvanize trade finance and reinforce the city’s connectivity with the Chinese mainland and the Association of Southeast Asian Nations.

The Project CargoX Recommendation Report is structured around three strategic pillars — data, infrastructure and connectivity. Under the proposals, government cargo and trade data will be integrated with infrastructure, while access to historical trade transaction records will be expanded to help banks better assess corporate creditworthiness. This will increase the availability of trade finance, particularly for small and medium-sized enterprises.

Besides paving the way for paperless trade by facilitating the development of digital infrastructure, both in the Hong Kong Special Administrative Region and with overseas trading partners, the 20-point plan also prioritizes enhancing connectivity with other jurisdictions including the mainland and ASEAN.

Howard Lee Tat-chi, HKMA deputy chief executive, said the report provides a “strategic blueprint and an actionable roadmap to position Hong Kong as a trusted, data-driven hub for global digital trade”.

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The report responded to a wide range of demands from Hong Kong’s trade industry, particularly calls for the development of a blockchain platform for import and export, Tommy Chung Ki-fung, a Hong Kong lawmaker representing the import-and-export sector, said.

Such a platform will help remove barriers between the trade, financial and logistics sectors, making it easier for companies including SMEs to access financing and simplifying customs clearance procedures, Chung said.

Trade credit insurers, he added, will also be able to draw on blockchain-based data to speed up underwriting decisions and be more willing to extend coverage for SME-related trade.

Moreover, the digitization of documentation will help cut the manpower and time costs, and lay the groundwork for closer integration between local and overseas electronic warehouse receipt systems, Chung said.

However, he cautioned that an industry-wide digital transformation would require concrete support from the HKSAR government, including system upgrades and digital skills training for staff, given that the city is home to a large number of trading companies that are at very different stages of digital adoption, with some still relying on non-standardized paper records.

The report was drawn up by the CargoX Expert Panel which brings together 24 industry experts from banks, cargo data providers, credit reference agencies, export credit insurers, government bodies and international organizations.

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Standard Chartered Bank (Hong Kong), among the first batch of panel members, said it will assist the implementation of the proposals and work with stakeholders to develop more next-generation trade finance solutions.

Leveraging its network across the mainland and ASEAN, the lender will step up efforts to facilitate cross-border data flows and support enterprises’ overseas expansion into emerging trade corridors, said Standard Chartered Bank (Hong Kong) Chief Operating Officer Rose Kay Lo-hei.

Launched in April last year, Project CargoX is built on Hong Kong’s financial data infrastructure — the Commercial Data Interchange (CDI).

Since its introduction in late 2022, the CDI has facilitated more than 82,000 loan applications and approvals as of last December, involving an estimated HK$66.4 billion ($8.5 billion) in approved credit, according to the HKMA. Banks that make more use of the platform have on average offered lending rates 36 basis points lower than those that rely less on the system.

Trade is Hong Kong’s second-largest industry after financial services. In 2024, the sector generated more than HK$475 billion in value added, accounting for over 15 percent of the city’s gross domestic product.

Contact the writer at irisli@chinadailyhk.com