HKMA chief outlines next-phase agentic finance development with simple guardrails
Hong Kong Monetary Authority Chief Executive Eddie Yue said agentic finance is the next frontier, and the authority is working with international partners on explainable AI tools and governance frameworks to ensure accuracy, consistency and interpretability.
Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue said agentic finance represents the next phase of development, and the authority aims to establish simple and easy-to-understand “guardrails” for its responsible application. Speaking at a forum organised by the Private Wealth Management Association, Yue outlined the HKMA’s recently launched SAGE project, which promotes the responsible development and use of agentic finance in Hong Kong.
Yue said the newly formed agentic finance expert panel will explore use cases and governance frameworks. The HKMA has issued a discussion paper to the industry covering interoperability standards and “know your agent” (KYA) measures. Unlike a typical consultation paper, Yue said the discussion paper is intended to facilitate faster and more interactive dialogue with the industry to build straightforward guardrails.
He stressed the importance of ensuring the accuracy, consistency and interpretability of AI models. The HKMA is collaborating with the Bank for International Settlements Innovation Hub, the UK Financial Conduct Authority and the Saudi Central Bank on the Noor project, which aims to develop a set of explainable AI tools. Yue said a prototype will be released early next year.
Turning to green finance, Yue said the Exchange Fund has invested heavily in green bonds and ESG-related projects. It has also partnered with various private equity firms to channel capital into infrastructure and green projects in Asia, with the goal of redirecting Asian capital back into the region to improve its own climate and environment.
Yue added that Hong Kong’s future development will be even more vibrant, with the city continuing to serve as a super-connector and gateway. He said the HKMA will focus on developing bond, gold and commodity markets, and building platforms that lead in global trends such as technology and green finance.
