Policy Address

Platform for Capital Formation and Financing

42.         Hong Kong can provide various countries with the capital required for infrastructure construction.  We have a diversity of financing channels in place, including equity listing, syndicated loans, private equity funds, ordinary bonds, dim sum bonds and Islamic bonds (sukuk). 

43.         On infrastructure investment and financing, the Asian Infrastructure Investment Bank (AIIB) is an integral part of the Belt and Road Initiative.  In addition to its initial capital, the AIIB will need to obtain project financing such as loan syndication or bond issuance.  Hong Kong is actively participating in the preparatory work for establishing the AIIB.  We have indicated to the Central Government our intention to join the AIIB, and provide mediation and arbitration services in Hong Kong.

44.         Stronger economic and trade ties between the Mainland and the Belt and Road countries will render the RMB more widely accepted.  Given the enormous demand for RMB-denominated trade and investment, the Belt and Road regions will be in need of a full-fledged international centre for offshore RMB business to cater for their RMB settlement, financing and fund management needs.  Blessed with well-developed RMB payment and settlement infrastructure, Hong Kong has been providing reliable and efficient services for various RMB inflow and outflow transactions in the Mainland and offshore markets.  Moreover, Hong Kong’s vibrant offshore RMB foreign exchange market offers an array of financial products.  It serves as an ideal platform for RMB capital and risk management for Mainland and international enterprises and financial institutions. 

Contents | Next