Hong Kong and Shanghai have launched a cooperation to use blockchain technology to simplify trade finance and cargo document processing, Cointelegraph reported on Tuesday.

The Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau (SDB) and the National Technical Innovation Center for Blockchain (NTICBC) signed a memorandum of understanding on cooperation for trade digitalisation. The cooperation is part of Project Ensemble launched in 2024. It centres on studying a blockchain-based platform linking trade data, electronic bills of lading (e-BL) and financial applications.

Project Ensemble seeks ways to apply cargo and commercial data to trade finance using the HKMA's blockchain-based financial data infrastructure, the Commercial Data Interchange (CDI). The HKMA introduced the CDI in 2022 to improve access to corporate data and simplify loan procedures. The cooperation also includes the HKMA's Project CargoX, supporting financial services by strengthening the use of trade data.

HKMA Deputy Chief Executive Howard Lee (하워드 리) stressed that the MOU would be an important milestone in cooperation on digital innovation between Hong Kong and Shanghai. "The two cities will promote cargo trade and financial digital applications and explore infrastructure to connect them," he said. Shanghai Data Bureau Director Xiao Jun (샤오 준) said, "This is an important step for data-driven innovation, and the goal is to build a safe and efficient digital infrastructure."