Page 78 - 2024 Special Report on the State of Business in South China
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via the Fast Payment System (FPS). The connectivity Kong has rolled out different measures that
of e-HKD and e-CNY shall become stronger in the incorporate sustainability elements upon the basis
future. There will be multiple means of connective of its existing financial infrastructure. In the Policy
capabilities in the areas of cross-border usage, top- Address of 2017, the Hong Kong SAR Government
up of e-wallet and offline payments. announced that it will spearhead the first issuance
of green bond in the city. In 2021, the loan ceiling
• Incentives for cross-border financial for green bond was raised to a total of HK$200
innovation billion, allowing greater room for the government
to experiment the currency denominations, types
To facilitate financial cooperation between and distribution channels of issuance. This effort
Shenzhen and Hong Kong and meet the strategic has diversified Hong Kong’s green and sustainable
objectives of the GBA, the Local Financial Regulatory finance profile.
Bureau of Shenzhen Municipality has reserved
six spots in the “Contribution Awards” category In 2022, the Hong Kong-arranged or issued
in accordance with the evaluation criteria for the green and sustainable bonds have exceeded
Shenzhen Financial Innovation Award, evaluated a value of US$80.5 billion8. This figure has
by the HKMA. These six winners are specifically grown 40% from the same in 2021, accounting
recognized for contributions made in improving the for 35% of the green and sustainable bond
cross-border financial infrastructure, expanding markets of Asia. In February 2023, the Hong
the channels of investment and capital financing, Kong SAR Government issued tokenized green
facilitating the connectivity of markets and bonds valued at US$101 million. It was the first
establishing new cooperative institutions between government-issued bond of the same kind with
Shenzhen and Hong Kong. This initiative has brought combined technology elements in the world
forth catalytic effects in the innovative collaboration and intended to raise awareness of the issues
of cross-border finance between Shenzhen and that concern sustainable development. In June
Hong Kong. Past winners included Bank of China’s 2023, the Hong Kong SAR Government also
(Shenzhen Branch) innovative service system, the issued nearly US$6 billion worth of green bonds
Shenzhen-Hong Kong Cross Boundary Connect, denominated in US dollars (USD), euro (EUR) and
and Bosera Asset Management’s Cross-Boundary Renminbi (RMB). This would be the largest ESG
(Offshore) Investment Buyback Transaction bond offer in Asia.
Support System. These are the innovative projects
that have enhanced convenience for both cities 8 https://www.info.gov.hk/gia/gener-
and the smooth operation of cross-border clearing al/202304/14/P2023041400143.htm
and settlement.
Green finance
In recent years, the volume of the global
green bond market has grown multifold. Many
investment opportunities emerged for the GBA
as it begins a process of carbon elimination.
It was estimated that the capital demand for
the GBA to fulfil its carbon elimination goals is
US$1.84 trillion7.
To encourage and facilitate the development
of a green and sustainable financial center, Hong
7 World Resources Institute, the Roadmap for
Deep Emission Reduction and the Opportunities of
Financial Support for Low Carbon Economy Transition
in the GBA, 2023
78
of e-HKD and e-CNY shall become stronger in the incorporate sustainability elements upon the basis
future. There will be multiple means of connective of its existing financial infrastructure. In the Policy
capabilities in the areas of cross-border usage, top- Address of 2017, the Hong Kong SAR Government
up of e-wallet and offline payments. announced that it will spearhead the first issuance
of green bond in the city. In 2021, the loan ceiling
• Incentives for cross-border financial for green bond was raised to a total of HK$200
innovation billion, allowing greater room for the government
to experiment the currency denominations, types
To facilitate financial cooperation between and distribution channels of issuance. This effort
Shenzhen and Hong Kong and meet the strategic has diversified Hong Kong’s green and sustainable
objectives of the GBA, the Local Financial Regulatory finance profile.
Bureau of Shenzhen Municipality has reserved
six spots in the “Contribution Awards” category In 2022, the Hong Kong-arranged or issued
in accordance with the evaluation criteria for the green and sustainable bonds have exceeded
Shenzhen Financial Innovation Award, evaluated a value of US$80.5 billion8. This figure has
by the HKMA. These six winners are specifically grown 40% from the same in 2021, accounting
recognized for contributions made in improving the for 35% of the green and sustainable bond
cross-border financial infrastructure, expanding markets of Asia. In February 2023, the Hong
the channels of investment and capital financing, Kong SAR Government issued tokenized green
facilitating the connectivity of markets and bonds valued at US$101 million. It was the first
establishing new cooperative institutions between government-issued bond of the same kind with
Shenzhen and Hong Kong. This initiative has brought combined technology elements in the world
forth catalytic effects in the innovative collaboration and intended to raise awareness of the issues
of cross-border finance between Shenzhen and that concern sustainable development. In June
Hong Kong. Past winners included Bank of China’s 2023, the Hong Kong SAR Government also
(Shenzhen Branch) innovative service system, the issued nearly US$6 billion worth of green bonds
Shenzhen-Hong Kong Cross Boundary Connect, denominated in US dollars (USD), euro (EUR) and
and Bosera Asset Management’s Cross-Boundary Renminbi (RMB). This would be the largest ESG
(Offshore) Investment Buyback Transaction bond offer in Asia.
Support System. These are the innovative projects
that have enhanced convenience for both cities 8 https://www.info.gov.hk/gia/gener-
and the smooth operation of cross-border clearing al/202304/14/P2023041400143.htm
and settlement.
Green finance
In recent years, the volume of the global
green bond market has grown multifold. Many
investment opportunities emerged for the GBA
as it begins a process of carbon elimination.
It was estimated that the capital demand for
the GBA to fulfil its carbon elimination goals is
US$1.84 trillion7.
To encourage and facilitate the development
of a green and sustainable financial center, Hong
7 World Resources Institute, the Roadmap for
Deep Emission Reduction and the Opportunities of
Financial Support for Low Carbon Economy Transition
in the GBA, 2023
78
