The People's Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) jointly announced on Thursday that they have signed the Memorandum of Understanding (MOU) on Fintech Innovation Supervisory Cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).

By signing the MOU, they have agreed to link up the PBOC's Fintech Innovation Regulatory Facility with the HKMA's Fintech Supervisory Sandbox.

The move aims to advance cooperation on fintech innovation on the basis of law and regulations, improve the quality and efficiency of financial services in the GBA and increase financial support for its development, said the PBOC.

In the next step, the two sides will, under the cooperation framework, adhere to the principles of mutual trust, mutual understanding and mutual respect, provide efficient fintech innovation testing services, and inject new impetus into the high-quality financial development of the GBA, it said.