The Hong Kong Monetary Authority (HKMA) has introduced a new initiative designed to assist banks in assessing companies for trade financing using cargo logistics data. This comes as global concerns over tariffs intensify. The initiative, named CargoX, will expand data sets on the HKMA’s electronic platform, the Commercial Data Interchange (CDI), to help small and medium-sized enterprises (SMEs) access trade financing more easily.
The initiative aims to support SMEs in navigating the complex international trade environment. According to the HKMA, about 25% of Hong Kong’s SMEs are involved in import-export trade and wholesale businesses.
HKMA CEO Eddie Yue Wai-man explained, “In today’s challenging global trade environment, SMEs need more efficient and digital trade finance solutions to adapt their business models and supply chains. CargoX, leveraging cargo data and our advanced CDI infrastructure, will address longstanding issues in trade finance, enhancing efficiency and fostering innovation across the industry.”
CargoX will securely share sea, air, and road cargo logistics data—with the companies’ consent—allowing banks to assess corporate lending more accurately.
Currently, the HKMA is working with several data providers, including Tradelink Electronic Commerce, the Airport Authority Hong Kong’s HKIA Cargo Data Platform, and the Transport and Logistics Bureau’s port community system, which is set to launch by the end of the year. The system uses blockchain technology to track cargo flows.
Major banks such as HSBC, Standard Chartered, and Bank of China (Hong Kong) are participating in the program. CargoX aims to speed up credit approvals, increase credit limits, reduce manual processes, and encourage innovation among banks.
Aditya Gahlaut, head of global trade solutions for Asia at HSBC, highlighted a key challenge in trade finance: the fragmentation of trade platforms. He noted that this fragmentation complicates obtaining reliable documentation for credit assessments. The CargoX initiative will provide banks with better insights into their clients’ activities.
A panel of experts will develop a roadmap for digitizing cargo data and integrating it into the CDI by the end of this year. Studies and the creation of new solutions are expected to follow in 2025 and 2026. The panel consists of representatives from cargo data providers, trade associations, banks, credit reference agencies, and government bodies. It convened for the first time on Monday.
Launched in October 2022, the CDI is an electronic platform that allows 26 banks to assess the creditworthiness of SMEs using data from 15 providers. As of December 2024, the platform has processed over 42,000 loan applications, resulting in an estimated HK$35.4 billion (US$4.6 billion) in credit approvals.
In August, the HKMA connected the CDI with the Companies Registry to provide banks with more data. Earlier this month, the HKMA also announced plans to work with 18 lenders to offer flexible loan options for SMEs impacted by US tariffs, including extended repayment periods and partial principal repayment options.
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