Major step forward for bilateral linkage between Hong Kong and Australia

As a step towards closer bilateral relations between Australian and Hong Kong financial systems, the Hong Kong Monetary Authority (HKMA) and the Reserve Bank of Australia (RBA) have agreed that the Central Moneymarkets Unit (CMU) of the HKMA will join RBA’s Reserve Bank Information and Transfer System (RITS).  RBA will explore with the HKMA further reciprocal arrangements to extend more widely the benefits that such co-operative arrangements can provide.

CMU is the central clearing and settlement system for debt securities in Hong Kong and RITS is a similar system for Australian government paper.

The two organisations believe that this bilateral linkage will broaden the investor base of the debt markets in Hong Kong and Australia by making cross system trading and holding of securities much easier.

The agreement was reached at a meeting between Mr Joseph Yam, Chief Executive of HKMA, and Mr Ian Macfarlane, Governor of RBA, in Sydney today (21 April 1997).  This is the second time the HKMA and the RBA have held bilateral annual meetings.  These annual meetings have been established in the context of fostering enhanced co-operation between the two central banks.  A range of subjects of mutual interest was discussed, including regional central bank co-operation, as well as recent economic developments and banking supervision policy and practice.

"In linking CMU and RITS, the two financial markets in Hong Kong and Sydney are now closely connected, facilitating investments in debt securities in both places," said Mr. Yam. "This represents a milestone in central bank co-operation to develop financial markets under our charge and make them deeper, safer and more efficient for issuers and investors."

Note to editor:
Photo will be despatched by Associated Press this afternoon.

Hong Kong Monetary Authority
21 April 1997