The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) signed a Memorandum of Understanding (MoU) for their cooperation on fintech innovation and supervisory exchanges in the region.

The two regulators have agreed to link up the PBOC’s Fintech Innovation Regulatory Facility with the HKMA’s Fintech Supervisory Sandbox in the form of a network.

The network link-up aims to provide a one-stop platform to allow eligible financial institutions (FIs) and technology firms to conduct pilot trials of cross-border fintech initiatives, concurrently in Hong Kong and Mainland Greater Bay Area cities.

Additionally, the arrangement will also enable FIs and tech firms to obtain early supervisory feedback and user opinions, expediting the launch of fintech products and reducing development costs.

Eddie Yue, Chief Executive of the HKMA said,

“The Fintech Innovation Supervisory Cooperation, in the form of a “network link-up”, will allow the Greater Bay Area to reinforce its leading fintech position and facilitate innovation in the region.

 

Deepening the cooperation between Hong Kong and the Mainland in the areas of finance, technology and supervision, is in line with the direction of enhancing Hong Kong’s competitive position and better integrating Hong Kong into the country’s overall development.”