Banks using more alternative data charge 36 basis points less
Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), cited lower borrowing costs linked to alternative data use at Cargox Solution Day in Hong Kong on October 5, 2026. He set out plans to expand regional trade-data connectivity.
Data bridges financing gaps
Commercial Data Interchange (CDI), launched in 2022, connects 17 data sources with 28 banks for consent-based sharing.
Lee said banks using CDI alternative data more actively charge interest rates averaging 36 basis points lower.
Fragmented cargo records and paper documents hinder SME credit assessments.
Project Cargox began in April 2025; 20 recommendations and a roadmap followed in mid-January 2026, then a pilot with 21 banks in May.
It seeks links to the Transport and Logistics Bureau's Port Community System and the Commerce and Economic Development Bureau's Trade Single Window.
Cargox Connect links CDI to the Shanghai Data Bureau's platform, giving pilot banks Yangtze River Delta trade declarations and accelerating loan drawdowns.
Trade corridors drive expansion
Hong Kong exports reached HK$667 billion in August 2026, up 53 percent year-on-year, after 19 consecutive months of double-digit growth.
Exports to ASEAN rose 47.8 percent in the first half of 2026.
China has been ASEAN's largest trading partner for 17 years; ASEAN has led China's partners for 6 years.
Lee welcomed Mr Weng from the Shanghai Data Bureau and Tan Sri from the PAA Digital Trade Alliance (PAA).
He said the HKMA and PAA would sign a memorandum of understanding later that day to advance regional connectivity.
Verification before wider credit
Lee tied broader financing access to banks' ability to verify trade through declarations and real-time cargo data.
He plans to extend the Hong Kong-Shanghai model to other Mainland trade hubs and promote it across ASEAN and other corridors.
The stated benefits span SME liquidity, bank risk management and data-provider revenue.
Source: Opening remarks - Cargox Solution Day
IN: