Speech by FS at 10th Belt and Road Summit Keynote Luncheon (English only) (with photos/video)
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Mr Fred Ma (Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma), Mr Chen Liang (Chairman of the Board of Directors and Chairman of the Management Committee of the China International Capital Corporation Limited), distinguished guests, ladies and gentlemen,
Good afternoon. Welcome to the keynote luncheon of the 10th Belt and Road Summit.
I am pleased that distinguished speakers have been lined up for this luncheon. Allow me to serve as your appetiser, by sharing briefly how Hong Kong is fostering more partnerships and contributing to regional connectivity through leveraging on two important global trends of our time: green and sustainable development, and digital innovation.
The case for green
In the face of rising unilateralism and the withdrawal from the Paris Agreement by a leading economy, Hong Kong remains steadfast in our commitment to climate action. We are on track to reduce our carbon emissions by half by 2035, and achieve carbon neutrality by 2050. This commitment is underpinned by four key strategies: decarbonising power generation, enhancing energy efficiency in buildings, promoting green transport and reducing waste.
But our ambition extends well beyond meeting domestic targets. Two years ago, in my Budget Speech, I set out a vision for Hong Kong to become an international centre for green technology and green finance. We firmly believe that Hong Kong can play a pivotal role in driving global green transition.
Let me begin with green finance, where Hong Kong is already a regional leader. According to market estimates, emerging and developing Asia requires an annual investment of at least US$1.1 trillion for climate mitigation and adaptation. Yet, current investment levels fall short by over 70 per cent, at about US$800 billion. Clearly, we need to mobilise capital more effectively for sustainable investments.
In 2024, sustainable debt issuances in Hong Kong exceeded US$80 billion, with green bonds accounting for around 45 per cent of the region’s total. In the first half of 2025, we saw a 15 per cent year-on-year increase, at over US$34 billion. On ESG (environmental, social and governance), over 200 funds have been authorised by the Securities and Futures Commission, with AUM (asset under management) exceeding US$140 billion, up more than 30 per cent in just three years. The liquidity and expertise in Hong Kong are deep, and the capacity is huge.
Distinguished guests, our platform is fully open to issuers not just from the Chinese Mainland but also from around the world. Sovereign entities, corporates, financial institutions, multilateral organisations are all welcome. Hong Kong stands ready to collaborate with regional and global partners to scale up sustainable finance and channel capital to where it is needed most.
We are also making good progress in transition finance, which plays a vital role in helping high-emission industries decarbonise. On this, a key enabler is the development of clear and robust classification, reporting and disclosure standards.
To this end, we are working to expand the Hong Kong Taxonomy for Sustainable Finance to incorporate transition finance, broaden sectoral coverage, and include climate adaptation activities. These enhancements aim to better guide capital flows toward credible climate initiatives and accelerate the transition to a low-carbon economy.
As an international financial centre, Hong Kong is deploying innovative financial instruments to address the diverse financing needs of emerging economies. Catastrophe (cat) bonds, for example, are valuable risk-transfer instruments for countries vulnerable to natural disasters. Since 2021, seven cat bonds have been issued in Hong Kong, totaling US$800 million, supporting countries across Asia and the Americas in sharing risks arising from typhoons and earthquakes with climate investors.
Another promising financial innovation is securitisation of infrastructure, which transforms brownfield infrastructure assets into investable products, thereby effectively unlocking capital for new greenfield projects. The Hong Kong Mortgage Corporation is a pioneer in this space. It has made two issuances of securitised loans, covering 35 infrastructure projects across 16 countries and regions, with a combined value exceeding US$800 million. This model mobilises more private capital for green initiatives in emerging markets while unleashing the investment potential of their infrastructure assets.
Hong Kong is also rapidly emerging as a dynamic hub for green technology innovation. Today, over 250 green tech companies are operating in Hong Kong Science Park and Cyberport, developing cutting-edge solutions in areas such as carbon capture, electric vehicle infrastructure, and sustainable building materials.
Many of these technologies are already being deployed across Southeast Asia and the Middle East, contributing to their decarbonisation efforts. This vibrant ecosystem remains open to global partners who are united by the shared mission of building a more sustainable and resilient future.
Digital innovation
Now let me turn to digital innovation, another key driver of global development. Across Hong Kong and the Chinese Mainland, a wide spectrum of digital solutions are emerging, from fintech and smart health, to cloud computing, 6G, and digital city management.
What sets Hong Kong apart is our role as a bridge connecting the Chinese Mainland and the rest of the world. Solutions that succeed here carry a global seal of approval. Hong Kong is a trusted test bed for Chinese tech applications going global and vice versa. For Belt and Road economies and the Global South, Hong Kong offers not only access to cutting-edge technologies but also the assurance that they are fully aligned with the best international standards and practices.
Artificial Intelligence (AI) is a pivotal driving force behind digital innovation. Our country, China, has adopted an "AI+" strategy to promote digital transformation across industries. Here in Hong Kong, we share that vision. We have made AI one of our key strategic priorities, and are progressing at full speed on five key fronts: algorithms, data, computing power, capital and talent. At a time of intensifying technological fragmentation, we are committed to building an open, collaborative and inclusive AI community, and we invite global scientists and innovators to join us.
Blockchain technology is at the heart of financial innovation. Digital assets, such as tokenised deposits and bonds, are greatly improving the efficiency of financial transactions. Hong Kong is at the forefront of this development. We have issued two tranches of tokenised green bonds worth HK$6.8 billion, which were well received by the market. Recognising the value and importance of digital currency in cross-border applications, Hong Kong is an active participant in the mBridge Project, a pioneering central bank digital currencies initiative for cross-border settlements. Meanwhile, we have also introduced licensing regimes for digital asset exchanges and stablecoins. Adopting a prudent and risk-based approach, we encourage financial innovation to serve the real economy with guardrails to protect investors and the stability of financial systems.
Closing
Ladies and gentlemen, I know I stand between you and your lunch, so I'll close by introducing our distinguished luncheon speaker, Mr Renat Bekturov, Governor of the Astana International Financial Centre. He joins us at a time when the collaboration between Hong Kong and Kazakhstan is growing stronger. Just two weeks ago, a leading mining company from Kazakhstan completed a dual listing in Hong Kong and the Astana International Exchange. It is the first Renminbi-denominated stock in Central Asia. Last week, the Development Bank of Kazakhstan also issued dim sum bonds of RMB2 billion here. It was also a pioneering move from a Central Asian government.
We are excited to hear Mr Bekturov's insights on Kazakhstan's latest developments, and how our two economies can collaborate more closely, build more partnerships and foster stronger connectivity.
On that note, I wish you a fortifying lunch, a fruitful Summit, and a most enjoyable stay in Hong Kong. Thank you very much.
Ends/Wednesday, September 10, 2025
Issued at HKT 14:50
Issued at HKT 14:50
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FS attends 10th Belt and Road Summit Keynote Luncheon