CMU OmniClear announced that it’s entered into agreements with the Hong Kong Monetary Authority (HKMA) and Hong Kong Exchanges and Clearing Limited (HKEX). HKEX will invest up to HK$455 million ($58.5mn) in CMU OmniClear Holdings to acquire a 20% stake through the subscription of new shares. Upon completion, the Exchange Fund of HKMA and HKEX will hold 80% and 20% of CMU OmniClear Holdings, respectively.
CMU OmniClear operates the Central Moneymarkets Unit (CMU), the central securities depository (CSD) for debt securities, on behalf of the HKMA with a more commercial approach, while HKEX is the operator of the CSD platform for equities in Hong Kong. Together, they offer access to securities in Hong Kong and the Chinese Mainland (via the Stock and Bond Connect links) with combined assets under custody exceeding US$5.1 trillion.
The partnership will support the continued commercialization of CMU and the pursuit of business development initiatives in areas such as expansion of its investor CSD services, asset classes coverage and collateral management services, with the goal of transforming CMU into a competitive, multi-asset class platform and enhancing cross-asset class efficiency in Hong Kong.
Eddie Yue, chair of the Board of Directors of CMU OmniClear Holdings, said in a statement: “This partnership establishes a strong foundation for transforming CMU into a multi-asset class platform that provides investors with one-stop access to equity and debt securities while facilitating efficient two-way investment flows between the Chinese Mainland, Hong Kong and international markets.”
Bonnie Chan, chief executive officer at HKEX, said in a statement: “Developing our FIC [fixed income and currency]capabilities sits at the core of HKEX’s strategic objectives, and this important investment reflects our commitment to building a diversified and vibrant multi-asset class product network, supporting the long-term resilience of our markets. As global investors seek more opportunities centred around our region, we look forward to working with regulators and market participants to further enhance Hong Kong’s status as a global bond fundraising, risk management and offshore RMB business centre.”
Stanley Chan, Group chief executive officer of CMU OmniClear Holdings, said in a statement: “By harnessing the combined expertise and experience of both parties, this collaboration will strengthen our equity post-trade servicing capabilities and empower investors to manage and cross collateralize multiple asset classes more effectively.”