Hong Kong, Shanghai sign pact on digital trade finance, cross-border data link

Hong Kong and Shanghai have signed an accord deepening their collaboration in promoting digitised cargo trade finance and strengthening mainland China’s connection to the global data ecosystem. The Hong Kong Monetary Authority (HKMA) on Monday signed a memorandum of understanding (MOU) with the Shanghai Data Bureau and the National Technology Innovation Centre for Blockchain, according to a statement from Hong Kong’s de facto central bank. “This marks an important milestone in the collaboration on financial innovation between Shanghai and Hong Kong, and underscores the joint commitment to strengthen collaboration between the two jurisdictions in digitised cargo trade and finance,” HKMA deputy chief executive Howard Lee Tat-chi said. The MOU, according to Lee, would help the three signatories explore and promote digitised trade finance, as well as facilitate the integration of mainland China’s cargo and trade data with the international data ecosystem via Hong Kong. Under the agreement, Hong Kong and Shanghai will explore using electronic bills of lading instead of traditional paper documents, while the electronic trade data will be studied via the HKMA’s Commercial Data Interchange (CDI) and CargoX. Project CargoX, part of HKMA’s fintech 2030 strategy, entails using blockchain and data to help exporters secure bank loans more easily and strengthen Hong Kong’s role as an international trading hub. The agreement reflects how mainland China and its financial centre, Shanghai, continue to see strong growth in trade finance despite international tension. In the first 11 months of 2025, China’s foreign trade container throughput rose 9.5 per cent year on year to 320 million 20-foot equivalent units (TEUs), contributing to a record US$1.19 trillion trade surplus for the full year, according to official data. China’s major ports helped drive that record. Shanghai, for example, handled container throughput of more than 50 million TEUs from January to November, surpassing 2024’s full-year total and putting it on track to set a new annual record, according to the Shanghai International Port Group. The MOU also represents the first major step forward in HKMA’s Project CargoX after the city’s de facto central bank unveiled a road map in January to introduce 20 measures under a five-year initiative. This road map aims to modernise the city’s trade finance landscape and strengthen connectivity with mainland China and the Asean trade corridors. “This collaboration will fully leverage Shanghai’s strengths in data integration and commercialisation, working in tandem with Hong Kong to realise innovative applications in digitised cargo trade and finance,” Shao Jun, director of the Shanghai Data Bureau, said. “We also look forward to showcasing a range of innovation outcomes through close cooperation, thereby injecting new momentum into Shanghai-Hong Kong digital collaboration.”