The Hong Kong Monetary Authority (HKMA) has unveiled a road map to introduce 20 measures under a five-year initiative aimed at modernising the city’s trade finance landscape and strengthening connectivity with mainland China and Asean trade corridors.
Project CargoX, part of HKMA’s Fintech 2030 strategy, would use blockchain and data to help exporters secure bank loans more easily and strengthen Hong Kong’s role as an international trading hub, said Howard Lee Tat-chi, deputy chief executive of HKMA.
“For Hong Kong to remain competitive, advancing digital trade finance infrastructure and broadening access to small and medium-sized enterprises [SMEs] will be key priorities,” Lee said in an interview ahead of the road map’s release on Monday.
“Project CargoX marks a pivotal step in modernising Hong Kong’s trade finance ecosystem by integrating advanced digital solutions, optimising cargo and trade data connectivity through our next-generation Credit Data Interchange [CDI] infrastructure, and strengthening international links.”
The CDI, launched in October 2022, is an electronic platform that allows 26 banks to use data from 17 providers to determine the creditworthiness of SMEs. The CDI had facilitated more than 82,000 loan applications worth HK$66.4 billion (US$9.5 billion) as of December 2025, according to HKMA data.
Loan approvals using CDI data were faster and carried interest rates 36 basis points lower on average than those without, Lee said.
The CDI’s success led the HKMA to announce the launch of Project CargoX in April and appoint a panel of experts from banks, insurers, data providers and exporters to devise 20 measures aimed at broadening the use of data in approving bank lending.
The first batch of measures to be rolled out over the next three years will include integrating government cargo and trade data platforms with the CDI to provide banks with more information for SME credit assessments. During the same period, banks will explore ways to share additional customer financial data, with consent, to support credit evaluation.
“Many SMEs have never borrowed trade finance as they lack property or other assets for collateral,” Lee said. “Project CargoX will change this by allowing banks to approve loans based on reliable business data.”
Enhancing connectivity with mainland China and members of the Association of Southeast Asian Nations will be another key priority, with the HKMA and other government departments set to develop new policies over the next five years to enable data transfer and promote stronger trade relationships.
“Mainland China and Asean are Hong Kong’s two major trading partners,” Lee said. “It is important to streamline documentation and data exchange with these jurisdictions.”
Trade is the city’s second-largest industry after finance, contributing 15 per cent of gross domestic product. In 2024, trade accounted for 3.6 times the city’s GDP, ranking Hong Kong third in the world.
Even with such strong figures, the city’s trade finance system remained dominated by paper documents and manual procedures, preventing data exchange with international trading partners, Lee said.
The road map proposes that companies adopt SME digital identities in trade transactions from 2027.
“Many other cities have accelerated digital trade initiatives,” Lee said. “Hong Kong must evolve its operating model and use more digital processes for the city to remain competitive as an international trade hub.”
Once trade finance was digitalised, “banks can also develop new products”, Lee said. -- SOUTH CHINA MORNING POST
