Hong Kong to propel belt and road market expansion, finance chief says

Hong Kong intends to bolster assistance for Belt and Road enterprises pursuing overseas market expansion, accentuating its crucial role as a central business platform for enhanced regional collaboration, declared the city's finance chief, Paul Chan Mo-po. In his weekly blog, Chan highlighted robust growth in emerging and developing economies, with the International Monetary Fund projecting further 3.8% and 4.5% expansion over the next two years.

"The gradual shift of mainland China's industrial chains towards Belt and Road regions is a response to this reality," he wrote.

Chan emphasized this during the lead-up to the 11th Belt and Road Summit in Hong Kong, set to commence this week. The summit, themed "Advancing high-quality development, embarking on a new journey," fosters business opportunities among participating nations in the Belt and Road Initiative, China's global trading network project.

This year's gathering will feature a dedicated "Go Global Chapter" to aid mainland firms venturing abroad. Notably, Mainland firms have established approximately 58,000 overseas entities, generating over two million local jobs yearly, with investments totaling US$3.4 trillion, nearly 90% of which are concentrated in developing economies, as per Chan.

He added, "Market demand is clearly driving industrial-chain deployment, economic growth is attracting capital flows, and the momentum of trade and investment is unmistakable, characterized by vibrant two-way movement." Chan noted that over 100 Belt and Road firms with a combined market capitalization surpassing HK$340 billion (US$43.36 billion) are now listed in Hong Kong, and some Central Asian state infrastructure firms are also considering their debut on the local exchange.

In terms of bond financing, 82 listed bonds from Belt and Road regions have been issued in Hong Kong since July, raising over HK$470 billion, Chan informed. He further noted that more governments, public institutions, and enterprises from Southeast Asia, Central Asia, and the Middle East have issued offshore yuan bonds in Hong Kong in recent years, a case in point being Kazakhstan's national oil and gas company's issuance of about 3.5 billion yuan last month, the largest such offering by a Central Asian enterprise in Hong Kong.

"The two-day summit on Wednesday and Thursday will also encompass energy, artificial intelligence, the low-altitude economy, and urban development, complemented by on-site visits," Chan said. Additionally, a climate-finance conference, co-hosted by the Hong Kong Monetary Authority and the Dubai Financial Services Authority, will take place during the summit week.

The event, alongside initiatives like a green technology project accelerator program and an updated sustainable finance classification, underscores Hong Kong's dedication to stimulating regional growth through green technology and finance, Chan added. He concluded by stating that Hong Kong would persist in leveraging its unique advantages under "one country two systems," from advancing hardware endeavors and harmonizing rules through soft connectivity to fostering people-to-people bonds that strengthen community ties.