Paul Chan: Determined to build Hong Kong into a green finance center

The Hong Kong government is determined to build Hong Kong into a green financial center. Chief Executive Carrie Lam attended the Hong Kong Association of Banks' Excellence Lecture and Luncheon today, stating that the government hopes Hong Kong will become the world's first jurisdiction to align its local sustainable disclosure financial reporting standards with international requirements. Therefore, a roadmap for adopting the International Sustainability Standards Board (ISSB) sustainable disclosure financial reporting standards will be announced in the coming weeks.

Secretary for Financial Services and the Treasury Christopher Hui said that bond issuance is at the core of green finance. Since May 2019, green sustainable bonds worth a total of 220 billion Hong Kong dollars have been issued in various currencies, making Hong Kong a leader in the green bond market. In the coming weeks, a roadmap for adoption of international financial reporting standards will be launched, making Hong Kong one of the first jurisdictions to align local and international sustainable reporting requirements. The HKMA released the "Sustainable Banking and Finance Action Plan" at the end of last month to help banks transform towards achieving net-zero emissions. Since May 2019, the government has collectively issued a total value of 220 billion dollars in sustainable development bonds and green debts.

He further stated that the Hong Kong government is committed to innovation and technological advancement in the financial sector, including providing funding schemes for the validation of concepts in green fintech and early-stage funding support for relevant projects. Fintech can also help businesses enhance efficiency and maintain a competitive edge through the use of artificial intelligence (AI) and blockchain technology.

He added that small and medium-sized enterprises account for over 98% of Hong Kong's businesses and employ approximately 45% of the private sector workforce. He emphasized the importance of supporting the digital transformation of small and medium-sized enterprises. The Hong Kong government has launched nine measures to support small and medium-sized enterprises this year, and the Hong Kong Monetary Authority and the banking industry have introduced a loan coordination mechanism for small and medium-sized enterprises.

Christopher Hui, Secretary for Financial Services and the Treasury, mentioned earlier this month that a comprehensive adoption of ISSB standards to formulate a roadmap is expected to be launched within this year. The roadmap will cover three other key areas, namely sustainable verification, data and technology, and capacity building.