The Hong Kong Monetary Authority on Monday rolled out 20 recommendations under Project CargoX — a multi-year public-private collaboration program — to modernize trade finance and reinforce the city’s connectivity with the Chinese mainland and the Association of Southeast Asian Nations.
Built on the special administrative region’s financial data infrastructure — the Commercial Data Interchange — CargoX was launched in April last year in a bid to strengthen Hong Kong’s digital trade finance ecosystem by unlocking the value of cargo and trade data.
Structured around three strategic pillars — data, infrastructure and connectivity — the proposals are aimed at accelerating data-enabled trade finance automation. By integrating government cargo and trade data with infrastructure, and enabling access to historical trade transaction records, banks will be better equipped to assess corporate creditworthiness.
The move will increase the availability of trade finance, particularly for small and medium-sized enterprises, the HKMA said.
Besides paving the way for paperless trade by facilitating the development of digital trade infrastructure, both in the SAR and with overseas trading partners, the plans also prioritize enhancing connectivity with other jurisdictions including the Chinese mainland and ASEAN — an 11-member regional grouping.
The 20-point roadmap 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.
Howard Lee Tat-chi, deputy chief executive of the HKMA, said the recommendations provide 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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By integrating advanced digital solutions, optimizing cargo and trade data connectivity through the CDI, and strengthening international links, “Project CargoX marks a pivotal step in modernizing Hong Kong’s trade finance ecosystem”, he said.
