Hong Kong, Beijing pledge 15 billion yuan for belt and road investment platform

Hong Kong and Beijing have pledged 15 billion yuan (US$2.05 billion) to create an investment platform targeting projects under the belt and road plan, including those focused on developing infrastructure and transitioning to renewable energy sources.

The Hong Kong Monetary Authority (HMKA) and the Silk Road Fund (SRF), a state-backed investment vehicle, signed a framework agreement in Beijing on Thursday after the Belt and Road Forum for International Cooperation wrapped up.

Under the first phase of the deal, both parties will put forward a total of US$1 billion to create an investment platform known as the BNR HK Flagship Impact Fund.

“The HKMA and the SRF will leverage their respective advantages in capital, information, technology and management to explore onshore and offshore investment opportunities, and provide financial support to the Belt and Road Initiative,” the authority said.

Xi signals China will stay the course with belt and road pledges

The belt and road plan refers to Beijing’s ambitious scheme to link dozens of economies in Asia, Europe and Africa into a China-centred trade network.

The newly established fund will offer financial backing to belt and road projects that focus on developing infrastructure and facilitating the transition away from finite energy sources.

The platform will also pursue opportunities covered under environmental, social and corporate governance policies.

The authority said Financial Secretary Paul Chan Mo-po attended the signing ceremony for the cooperative framework.

The Post has contacted the authority and Financial Secretary’s Office for further details on the investment platform deal.

Chan joined a 70-strong delegation that left Hong Kong earlier this week to attend the two-day summit in Beijing.

The delegation was led by Chief Executive John Lee Ka-chiu and consisted of senior officials and business heavyweights, who attended all 10 of the forum sessions held Tuesday and Wednesday.

Lee on Thursday said that among the agreements signed at the high-powered event, three involved Hong Kong companies. More than 100 agreements were signed at the forum.

Lee did not disclose the names of the businesses involved, but said the three deals had a combined value of US$450 million and covered the healthcare, technology and investment sectors.

In September, the vice-premier signalled his leadership of the Central Leading Group on Hong Kong and Macau Affairs, the country’s de facto highest decision-making body for the two special administrative regions, when he spoke at a separate high-level belt and road forum hosted by the Hong Kong government.

Lee on Thursday said the four-day trip had helped him reconnect with political and business leaders he had met during his past overseas tours, as well as make “new friends”, citing talks with forum attendees from Egypt and the Balkan nation of Montenegro.

“I will definitely continue to make overseas visits and Asean countries will be my priority. I also have plans to visit countries in other regions, including the Middle East and Europe,” he said. “We are stepping out to make business opportunities happen.”

Hong Kong can foster cultural exchanges under belt and road plan: John Lee

Lee stopped short of naming which countries were on his itinerary, but said further details would be announced once the plans were finalised.

Hong Kong’s leader also said the city had always attached great importance to its trade ties with Europe.

“I have had frequent communications with the European consuls general in Hong Kong and the European Union envoy in Hong Kong on different occasions,” he said. “We all have a common interest to grow the economy and expand trade, so we will move forward in this regard.”

Lee visited the Middle East in February and later toured Singapore, Malaysia and Indonesia, which are member countries of the Association of Southeast Asian Nations, in July.

Hong Kong open for investment, city leader John Lee tells belt and road forum

Hong Kong’s leader on Thursday said he was “very excited” by Xi’s eight-point action plan outlined at the opening session of the forum a day earlier, describing the city as being in “perfect alignment” to support it.

Lee cited the emphasis on “small but beautiful” projects among belt and road schemes, with such initiatives potentially relying on the city’s world-class professional services.

He also pointed to a training event organised by the city’s Independent Commission Against Corruption to fulfil Beijing’s aspiration of graft-free belt and road developments.

Vowing that Hong Kong would continue using its strengths to support the belt and road plan, he said: “The initiative is on the right side of history. It will be a win-win situation through cooperation.”