HKMA holds Cargox Solutions Day to promote regional trade data connectivity

On 5 October, the Hong Kong Monetary Authority (HKMA) successfully held the Cargox Solutions Day, bringing together key stakeholders in the freight logistics and trade data ecosystem to exchange insights and showcase innovative solutions under the Cargox pilot projects that enhance regional trade data connectivity. With the theme "Building Local and Regional Trade Data Connectivity Cargox Pilots Break New Ground in Trade Finance", the Solutions Day attracted over 300 participants from banks, freight logistics and trade data providers, government bodies and Commercial Data Interchange (CDI) partner institutions. The event featured keynote speeches, panel discussions and solution demonstrations, focusing on how to strengthen trade data connectivity between Hong Kong and major trading partners, including Mainland China and ASEAN economies, as well as the connection between CDI and key government freight logistics and trade data platforms. One of the highlights of the Cargox Solutions Day was the signing of a Memorandum of Understanding (MoU) between the HKMA and the PAA Digital Trade Alliance (PAA) to promote trade finance digitalisation. The two parties will embark on innovative projects to enhance freight logistics and trade data connectivity between Hong Kong and PAA member economies, thereby stimulating data-driven financial services innovation and increasing trade finance opportunities in the region. The HKMA also shared progress of the Cargox pilot projects in enhancing connectivity with major trade corridors. In particular, the HKMA has worked closely with the Shanghai Municipal Data Bureau to successfully connect CDI with the digital trade platform built by the Shanghai Municipal Data Bureau. Through this collaboration, named "Cargo Trade Connect", the first batch of five pilot banks were able to obtain and use trade customs declaration data from the Yangtze River Delta region to facilitate trade finance processes such as verifying trade authenticity and conducting due diligence on counterparties, enabling Hong Kong enterprises engaged in onshore and offshore trade to obtain loans more quickly. The pilot project has so far facilitated ten trade finance approvals amounting to HK$180 million. The HKMA will seek to extend this successful model to other Mainland provinces and cities in the next phase of development. Building on the encouraging progress achieved through collaboration with the Shanghai Municipal Data Bureau and the PAA, the HKMA will continue to leverage Cargox to play Hong Kong's role as a super connector, strengthening trade data connectivity with major corridors such as Mainland China and ASEAN. The ultimate goal is to enhance the transparency of cross-border trade transactions, create more trade finance opportunities, and support the business growth of SMEs in the region. Mr Lee Tat-chi, Deputy Chief Executive of the HKMA, said that today's Cargox Solutions Day provided an important platform to showcase how the Cargox pilot projects have translated strategic recommendations into concrete actions. Building on the encouraging progress of the Cargox pilot projects, the signing of the MoU between the HKMA and the PAA marks an important milestone in striving to create regional trade data connectivity with economies such as ASEAN, bringing more convenient trade finance for SMEs. With the CDI data infrastructure, Cargox will continue to expand from the local to the regional level, building a more efficient and inclusive cross-border digital trade ecosystem, supporting SME growth and promoting smooth international trade. Tan Sri Dr. Mohd Nazlee Kamal, Chairman of the PAA, said that the signing of the MoU with the HKMA is an important milestone in promoting regional cross-border trade finance. By connecting the PAA's solid regional network with Hong Kong's advanced CDI infrastructure, it will further unlock the potential of data-driven finance, reduce the long-standing information and financing barriers in cross-border trade, and expand access to funding for SMEs in ASEAN and neighbouring economies. The PAA looks forward to working with the HKMA to build a more inclusive, resilient and highly digitalised regional trade ecosystem.