Hong Kong and UAE central banks explore closer financial ties to promote investments
- HKMA sets up working group with UAE’s central bank to promote cross-border payments, yuan trading, ESG, virtual assets regulation and wealth management
- Middle Eastern investors do not know much about Hong Kong’s yuan-related services or its different connect schemes, HKMA boss Eddie Yue says
The central banks of Hong Kong and the United Arab Emirates (UAE) are working together to set up financial infrastructure and policies in five major areas to promote cross-border payments and investments between the two markets.
Yue, who led a delegation of bankers on a three-day trip to the UAE last month, said the HKMA has set up a working group with the Central Bank of the UAE to study policies and infrastructure for promoting cross-border digital payments, trading of yuan products, regulations on virtual assets and ESG (environmental, social and governance) financing.
The Hong Kong Association of Banks, the industry body of local lenders, is working with its UAE counterpart on these developments.
“During our visit, we found that many bankers and investors in the UAE have great interest in the yuan and Hong Kong’s capital market, but they do not know much about Hong Kong’s yuan services or the many connect schemes between Hong Kong and the mainland,” Yue said in a select media interview.
