The Hong Kong Monetary Authority (HKMA), Hong Kong’s central bank, said it is comimtted to advancing innovation that enhances efficiency and resilience.
In a statement, HKMA deputy chief executive Howard Lee reaffirmed the commitment as Hong Kong’s financial infrastructure evolves to meet the growing demands of the market.
Lee made the comment as the city’s central bank and bourse operator launched a pilot to test the use of e-HKD for derivatives after-hours trading.
Hong Kong Exchanges and Clearing (HKEX) and the HKMA said the joint pilot will explore the use of e-HKD, a wholesale central bank digital currency operating around the clock, for advance margin payments in the after-hours trading session of the derivatives market.
The initiative aims to improve Hong Kong’s capital market infrastructure by giving clearing participants a more flexible and timely way to make advance margin payments outside regular banking hours.
Under the current arrangement, clearing participants must submit advance margin deposit requests to HKFE Clearing Corporation by 3 p.m. for the funds to be counted for the subsequent after-hours trading session.
HKEX is inviting clearing participants under HKFE Clearing Corporation to take part in optional real-value trial transactions. Any wider adoption will depend on regulatory approval, market readiness and other considerations.
Vanessa Lau, HKEX chief operating officer, said the project aims to address longstanding operational pain points while strengthening the resilience of Hong Kong’s markets.
The pilot forms part of Hong Kong’s broader push to develop digital financial infrastructure and strengthen its position as an international financial centre through the adoption of emerging financial technologies, including wholesale CBDCs.