Hong Kong and Shanghai authorities have agreed to deepen collaboration on using blockchain technology to streamline trade finance and cargo documentation. The partnership involves joint research on a blockchain-based cross-border platform linking trade data, electronic bills of lading, and financial applications. It will leverage Hong Kong’s existing Commercial Data Interchange infrastructure.
Authorities in Hong Kong and Shanghai have formalized a new partnership to advance blockchain applications in trade. The Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau (SDB), and the National Technology Innovation Center for Blockchain (NTICBC) signed a memorandum of understanding to deepen collaboration.
The parties will conduct joint research on developing a blockchain-based cross-border platform. This initiative falls under the HKMA’s Project Ensemble, which explores tokenized market infrastructure and new digital rails for financial services.
The project will use the HKMA’s blockchain-based Commercial Data Interchange (CDI) to explore trade finance. It also plans to draw on Project CargoX, another HKMA initiative built on the CDI aimed at strengthening trade and cargo data capabilities.
Howard Lee, deputy chief executive of the HKMA, described the MoU as an “important milestone” for digital innovation cooperation. “We look forward to driving innovative application of digital technology in areas such as cargo trade and finance,” he stated according to the announcement.
The director of SDB, Shao Jun, said the partnership marks a significant step towards fostering data-powered development. The goal is to establish a secure, efficient, and open digital infrastructure linking the two cities.
In a separate policy track, Hong Kong is also taking steps to make its tax concessions more attractive to digital assets. Hui Ching-yu, Hong Kong’s secretary of financial services and the treasury, shared a proposal to introduce tax exemptions for overseas digital assets.
The proposals seek to add digital assets to the qualifying investments for investment funds and family offices. Subject to approval, profits from digital assets held under these structures would qualify for tax exemption.
