HKEX invests in HKMA unit, strengthening city’s financial market infrastructure

Bourse operator Hong Kong Exchanges and Clearing (HKEX) is making a substantial investment in the Hong Kong Monetary Authority (HKMA)’s CMU OmniClear Holdings, marking a new phase in the development of the city’s financial market infrastructure.

The HKEX would invest as much as HK$455 million (US$58.5 million) to acquire a 20 per cent stake in the HKMA’s wholly owned subsidiary, while the HKMA’s Exchange Fund will retain an 80 per cent share, the city’s de facto central bank said in a statement on Wednesday.

CMU OmniClear operates Hong Kong’s Central Moneymarkets Unit (CMU), a central securities depository (CSD) that provides clearing, settlement and custody services for debt securities. The platform is a crucial part of the city’s financial market and aims to become a major CSD in Asia by connecting Chinese and global bond markets within a single network.

The partnership aimed to strengthen Hong Kong’s position as a leading financial hub and to advance the long-term development of its fixed income and currencies (FIC) markets, which cover bonds, foreign exchange and other instruments, the statement said.

“The strategic collaboration between the HKMA, CMU OmniClear and the HKEX marks a significant milestone in the development of Hong Kong’s financial infrastructure,” said Eddie Yue Wai-man, chief executive of the HKMA and chairman of CMU OmniClear Holdings.