Hong Kong, Shanghai sign MOU for blockchain-based shipping, financial information
Authorities in Hong Kong and Shanghai have agreed to use blockchain technology to streamline trade finance and shipping documents, in a new partnership announced Monday.
Hong Kong Monetary Authority (HKMA), Shanghai Data Bureau (SDB) and National Technology Innovation Center for Blockchain (NTICBC) have signed a memorandum of understanding to strengthen cooperation in digitizing cargo trade and finance.
The parties will conduct a joint study on the merits of developing a blockchain-based “cross-border platform” to connect business data, electronic bills of lading and financial applications, launched in 2024 to explore new digital railways for financial services and Tokenized market infrastructure.
The project uses HKMA's blockchain-based financial data infrastructure, Trade Data Exchange, to investigate trade finance using freight and trade data. HKMA launched CDI in 2022 to facilitate institutional access to corporate data.
The partners plan to draw on CargoX, an HKMA initiative project built on CDI, to strengthen financial and related services business intelligence capabilities.
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“Important chapter” for digital innovation: HKMA
HKMA Deputy Chief Executive Howard Lee described the MoU as a “significant milestone” in digital innovation cooperation between Hong Kong and Shanghai. The agencies also aim to introduce new digital applications in cargo trade and finance and explore infrastructure linking the two cities.
“We look forward to driving the application of new digital technologies in areas such as freight trade and finance, promoting joint achievements in digital innovation, exploring the digital infrastructure connecting Shanghai and Hong Kong, and promoting the digitization of trade finance.” […]He said.
SDB Director Shao Jun said the collaboration “is a significant step in our commitment to promote data-driven and innovation-driven development, and strive to establish a secure, efficient and open digital infrastructure.”
A different emphasis on digital property policy
In a separate policy move, Hong Kong is taking steps to make its tax breaks more attractive to investment funds and family offices by expanding eligible investments to include digital assets.
On Monday, Hong Kong's Financial Services and Treasury Secretary Hui Ching-yu proposed exempting overseas digital assets as part of an initiative to make Hong Kong's tax breaks more attractive to investment funds and family offices.
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The proposals seek to add digital assets to investments that qualify for investment funds and family offices, the secretary said in Monday's speech at a meeting of the Legislative Council's Financial Affairs Committee.
Pending approval, the measure means that profits from digital assets held under these structures will qualify for tax exemption.
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