Hong Kong’s de facto central bank has connected its securities settlement platform with Switzerland’s SIX stock exchange, giving its members direct access to securities in Swiss and Spanish markets — the first time the CMU has expanded into equity post-trade services.
What Happened
The Hong Kong Monetary Authority (HKMA) announced on July 29 that its Central Moneymarkets Unit (CMU) had established a direct linkage with Switzerland’s SIX exchange, while simultaneously launching equity post-trade services on the CMU platform for the first time. Previously, the CMU focused exclusively on bond market custody and settlement.
CMU OmniClear — a company established in 2024 to commercialise and expand the CMU’s operations — will deliver the new equity post-trade services. The SIX linkage enables CMU members to access Swiss and Spanish securities directly, broadening the platform’s overseas network beyond its traditional Asian focus.
“We are pleased to see the successful launch of the direct linkage between CMU and SIX, and equity post-trade services by CMU OmniClear,” said Eddie Yue, Chief Executive of the HKMA, calling the developments “a significant step forward” in expanding the CMU’s capabilities.
Why It Matters for Foreign Investors
The expansion signals three strategic shifts relevant to foreign companies using Hong Kong as a capital markets gateway. First, it confirms that the HKMA is committed to building the CMU into a multi-asset, internationally connected post-trade platform — not merely a bond depository for Hong Kong’s domestic market. This long-term vision matters because infrastructure investment of this scale requires years of regulatory coordination and systems integration across multiple jurisdictions.
Second, the expansion comes at a time when China is actively encouraging foreign institutional investors to increase their RMB-denominated asset allocation. The PBOC’s recent data shows foreign holdings of Chinese bonds reached 4.5 trillion yuan in mid-2026, up 14% year-on-year. The CMU’s expanded services make it easier for these investors to also access Hong Kong-listed equities through the same settlement infrastructure.
- Hong Kong deepens its role as China’s offshore financial hub. The CMU-SIX linkage broadens the range of international securities available through Hong Kong’s infrastructure, reinforcing the city’s position as the primary intermediary between global capital and China’s onshore markets.
- Equity post-trade services mark a new direction. The CMU’s expansion beyond bonds into equities suggests the HKMA is building toward a multi-asset post-trade platform — potentially paving the way for cross-border equity settlement services that could eventually connect to China’s onshore A-share markets.
- Swiss and Spanish market access opens new channels for European investors. The SIX linkage covers Swiss and Spanish securities, giving European institutional investors a more direct route into Hong Kong’s and China’s capital markets through their existing European custody relationships.
The Numbers Behind the Move
| Metric | Detail | Significance |
|---|---|---|
| CMU total assets under custody | HKD 4.3 trillion (est. 2025) | One of Asia’s largest CSDs |
| CMU OmniClear established | 2024 | Commercialisation arm |
| SIX exchange coverage | Swiss + Spanish equities | First European expansion |
| New service type | Equity post-trade | Beyond bond-only model |
What Foreign Companies Should Watch
For foreign businesses operating in or investing into China, three developments merit attention:
- RMB internationalisation infrastructure: The CMU’s expansion supports offshore yuan-denominated securities settlement. Foreign companies with RMB treasury operations should monitor whether CMU OmniClear adds yuan clearing services for the new equity products — a move that would reduce the cost of dual-currency settlement for European subsidiaries of Chinese companies.
- European-China corridor deepening: The Swiss-Spanish linkage suggests HKMA is prioritising European market connections. Companies with European-Asian cross-border operations may find simplified settlement timelines and reduced counterparty risk. The move also creates a clearer channel for European sovereign wealth and pension funds to increase allocation to Hong Kong-listed Chinese equities without establishing local custody relationships.
- Potential Stock Connect implications: The CMU’s equity pivot could eventually integrate with China’s Stock Connect programmes. Foreign investors should track whether Shanghai-Shenzhen-HK Stock Connect begins routing through CMU infrastructure, which would change settlement cycles and fee structures. If the CMU becomes the settlement backbone for northbound trading, foreign investors could benefit from T+1 settlement currently available only in the bond market.
One Data Point
The number to remember: HKD 4.3 trillion — the estimated assets under custody on the CMU platform, making it one of the largest central securities depositories in Asia, now expanding beyond fixed income for the first time in its history.
Where to Go From Here
Based on what you just read:
- Ready to act? Read [guide: china-capital-market-entry-hong-kong-gateway]
- Still comparing? See [comparison: hong-kong-vs-shanghai-vs-shenzhen-stock-connect]
- Need numbers? Try [tool: china-capital-markets-entry-decision-tool]
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