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Financial and Monetary Affairs
trading of the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect upon fulfilment of certain criteria.
Bond Connect
Northbound trading under Bond Connect has been growing healthily since its launch in July 2017. In 2019, an additional electronic trading platform was launched, the settlement cycle was expanded to support T+3 settlement and a subscription service was rolled out for Chinese Negotiable Certificates of Deposit in the primary market.
Guangdong-Hong Kong-Macao Greater Bay Area
The Hong Kong Special Administrative Region (HKSAR) Government and financial regulators. work closely with Mainland authorities to deepen financial cooperation and implement policy initiatives along broad directions set out in the Outline Development Plan for the Guangdong- Hong Kong-Macao Greater Bay Area, including those announced following the third meeting of the Leading Group for the Development of the Greater Bay Area in November.
A number of financial facilitation measures relating to people's daily lives are in place. First, Hong Kong e-wallets can now be used in the Mainland, including the Greater Bay Area, as more merchants signed up. Second, a Hong Kong bank was approved to launch a pilot scheme for Hong Kong permanent residents to open Mainland personal bank accounts in the Greater Bay Area remotely by attestation. The Central People's Government (CPG) has given its support to explore the establishment of a cross-boundary wealth management connect scheme that will meet the demands of residents in both places. The HKSAR Government is discussing the details with Mainland authorities.
For the insurance sector, the CPG extended preferential treatment under the China Risk Oriented Solvency System, which reduces the capital requirement on Mainland insurers when they cede business to qualified Hong Kong professional reinsurers, for one year until 30 June 2020. The CPG also removed the eligibility requirement on years of operating experience for Hong Kong service suppliers to establish insurance loss-adjusting companies in the Mainland, and supported Mainland insurers to issue catastrophe bonds in Hong Kong and Macao by relaxing the requirements.
Mainland and Hong Kong Closer Economic Partnership Arrangement
The Closer Economic Partnership Arrangement (CEPA) gives Hong Kong's financial service providers and professionals greater market access and flexibility in their Mainland operations. It also enhances Hong Kong's attractiveness to market users and strengthens the city's competitiveness as an international financial centre and the premier capital formation centre for Mainland enterprises.
Belt and Road Initiative and International Cooperation
Asian Infrastructure Investment Bank
Hong Kong is a member of the Asian Infrastructure Investment Bank (AIIB), a multilateral development bank (MDB) that aims to foster sustainable social and economic development in Asia by supporting infrastructural development and regional connectivity. Hong Kong
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