Hong Kong has the conditions to become an international green financial center

Hong Kong has the conditions to become an international green financial center

The HKMA announced three initiatives yesterday to support and promote the development of green finance in Hong Kong. As the representative of the Hong Kong government, it will also issue the first batch of green bonds with a scale of 100 billion yuan. President Chen Delin said that the new measures aim to mitigate climate change risks and achieve sustainable finance, and that the authorities will give priority to green projects when their future investments, such as risk returns, are similar to other projects.

The development of green finance in Hong Kong is a two-pronged approach. On the one hand, it can consolidate and enhance the status of an international financial centre. On the other hand, it can also help promote environmental protection. The HKMA has introduced three new measures. There are two main principles behind it. First, we work closely with stakeholders and then set standards for green finance. After all, green finance is a new thing, and there is no recognized standard framework in the world. Therefore, with reference to the actual operation of the local banks and the international practice, the Administration hopes to learn from each other’s strengths. This is an “outside-in” process that draws on market and world experience. Further, we can also strive for “from the inside out”. Once mature, Hong Kong’s green financial standards will be promoted, and even become the green financial standard in the region and internationally.

Hong Kong has great conditions for green finance. In the first place, “Dawan District” has brought huge business opportunities to Hong Kong’s green finance. The plan outlines that Dawan District should innovate a green and low-carbon development model and support Hong Kong to build a green financial center in Dawan District and build an internationally recognized green bond recognition. mechanism. Second, the central government will continue to accelerate the optimization and upgrading of the economic structure, with special emphasis on accelerating green development. According to the data, last year, the global green bond wassuance totaled about 160 billion US dollars, and China was the second largest issuer in the United States, with a scale of more than 30 billion US dollars, which brought huge opportunities for Hong Kong. Thirdly, at the just-concluded “One Belt, One Road” international cooperation summit forum, President Xi Jinping proposed to adhere to the three concepts of “openness, greenness, and integrity”, emphasizing the need to use green as a background and promote green infrastructure construction and green investment. Green Finance, China and Hong Kong have also signed the “One Belt, One Road” Green Investment Principle with the United Kingdom, France and Singapore. Hong Kong is sure to make a big difference in the development of green finance in the “Belt and Road”. In addition, there is market analysis that between 2017 and 2030, global emerging markets will have as much as $23 trillion in climate projects. All of these, there is no doubt that Hong Kong has become an international green financial center, providing endless opportunities and opportunities for development.

The development of green finance in Hong Kong is not the first starter. However, based on the relevant process, the world is still at a very preliminary stage. It is certainly unspeakable to start today. In particular, the above-mentioned premise foundation and future potential cannot be ruled out. The possibility of holding the world’s ears. The HKMA survey last month found that Hong Kong banks have 61 billion yuan of green assets, of which 20 billion are green loans. 60% of the banks surveyed said that they will accelerate the development of green finance in response to customer demand, and arranged and issued in Hong Kong last year. The green bonds also exceeded RMB 85 billion, which is more than doubled year-on-year. This shows that Hong Kong’s green finance scale and growth rate are absolutely not small.

With the official first batch of green bonds coming out and playing the role of a better “promotor”, the HKMA has taken the lead in supporting the construction of a green finance system, which will set up a green financial center to provide technical support and economic sharing platforms. In the next year, I will co-organize the “Climate Business Forum” with the International Finance Corporation in Hong Kong to play a more active “promoter” function. It is not difficult to expect that after the implementation of various measures, Hong Kong’s green finance will be able to rise to the next level. The status of the international financial center will also increase simultaneously.