Page 80 - 2024 Special Report on the State of Business in South China
P. 80
In May 2021, the HKMA announced the guideline Furthermore, to ensure the recognition
on the Green and Sustainable Finance Grant of ESG investments by international markets
Scheme (GSF Grant Scheme). By supporting bond and the transparency of capital flow, and also
issuance and loan borrowing in the green and to discourage greenwashing, the Hong Kong
sustainable sector, it enhances Hong Kong’s status SAR Government has been exploring the use
as the financial center for green and sustainable of Common Ground Taxonomy (CGT) as the
development. As of May 2023, the Hong Kong basis for building the framework for green
SAR Government has already approved nearly categorization, and this will be compatible with
HK$180 million worth of subsidies to around 250 the green categorization in the mainland and the
green and sustainable debt instruments issued in European Union, meeting the global standard for
Hong Kong, raising a total of US$80 billion worth best practices.
of debt.
The GBA has been actively engaged in the
For China’s offshore green bonds, the HKEX cooperation and exchange for green finance
is still the most-favored listing index. In 2022, in recent years. In 2020, the Greater Bay Area
the trade volumes for China’s offshore green Green Finance Alliance (GBA-GFA), the nation’s
bonds at the HKEX constituted 43% of the total first regional green finance alliance, was
turnover. At the same time, the scale of issuance formally established in Shenzhen. In April 2023,
for green bonds in the domestic markets has the GBA-GFA and Hong Kong Green Finance
also expanded. In 2022, such growth continued Association co-organized a meeting in Hong
and reached the record level of US$155 billion Kong themed “Strengthening GBA Sustainable
(about RMB1 trillion), a growth of 35% YoY9. The Finance Collaboration” with support from the
Guangdong Province, Hong Kong and Macau Financial Services and the Treasury Bureau, the
have issued a total of 213 “green-oriented bonds” SFC and the HKMA. The meeting addressed how
in 2022, in a total scale of RMB373.996 billion. to harness the respective strengths of the GBA
Shenzhen’s issuance was the largest, reaching cities and enhance collaboration for the GBA’s
RMB141.093 billion, accounting for 37.7% of development of its sustainable finance market.
the GBA’s green bond market. The scale of The development and integration of the GBA’s
bond issuance in Hong Kong and Macau in 2022 green finance profile has strategic significance for
were RMB78.908 billion and RMB28.419 billion the nation’s sustainable development.
respectively, accounting for 21.1% and 7.6% of
the total green bond market in the GBA10. Cross-border finance
9 China Sustainable Debt: State of the Mar- As the key milestones for the bilateral
ket Report (2022), Published jointly by the Climate opening of the financial markets in Hong Kong
Bonds Initiative, China Central Depository & Clearing and Shenzhen, the cross-border connectivity
Research Center (CCDC Research) and CIB Economic measures, such as the Cross-border Wealth
Research and Consulting (CIB Research). Management Connect, the Shenzhen-Hong Kong
10 http://www.gzgfa.org.cn/uploads/ueditor/ Stock Connect and Bond Connect continued to
file/20230425/1682390738504454.pdf improve and upgrade, and greatly enhanced the
overall competitiveness of the financial markets
in the GBA.
• Cross-boundary wealth management
connect
On 10 September 2021, the Implementing
Rules for the Pilot Scheme of Wealth
Management Connect (WMC) in the Greater
Bay Area was simultaneously released in
Guangdong, Hong Kong and Macau. The eligible
80
on the Green and Sustainable Finance Grant of ESG investments by international markets
Scheme (GSF Grant Scheme). By supporting bond and the transparency of capital flow, and also
issuance and loan borrowing in the green and to discourage greenwashing, the Hong Kong
sustainable sector, it enhances Hong Kong’s status SAR Government has been exploring the use
as the financial center for green and sustainable of Common Ground Taxonomy (CGT) as the
development. As of May 2023, the Hong Kong basis for building the framework for green
SAR Government has already approved nearly categorization, and this will be compatible with
HK$180 million worth of subsidies to around 250 the green categorization in the mainland and the
green and sustainable debt instruments issued in European Union, meeting the global standard for
Hong Kong, raising a total of US$80 billion worth best practices.
of debt.
The GBA has been actively engaged in the
For China’s offshore green bonds, the HKEX cooperation and exchange for green finance
is still the most-favored listing index. In 2022, in recent years. In 2020, the Greater Bay Area
the trade volumes for China’s offshore green Green Finance Alliance (GBA-GFA), the nation’s
bonds at the HKEX constituted 43% of the total first regional green finance alliance, was
turnover. At the same time, the scale of issuance formally established in Shenzhen. In April 2023,
for green bonds in the domestic markets has the GBA-GFA and Hong Kong Green Finance
also expanded. In 2022, such growth continued Association co-organized a meeting in Hong
and reached the record level of US$155 billion Kong themed “Strengthening GBA Sustainable
(about RMB1 trillion), a growth of 35% YoY9. The Finance Collaboration” with support from the
Guangdong Province, Hong Kong and Macau Financial Services and the Treasury Bureau, the
have issued a total of 213 “green-oriented bonds” SFC and the HKMA. The meeting addressed how
in 2022, in a total scale of RMB373.996 billion. to harness the respective strengths of the GBA
Shenzhen’s issuance was the largest, reaching cities and enhance collaboration for the GBA’s
RMB141.093 billion, accounting for 37.7% of development of its sustainable finance market.
the GBA’s green bond market. The scale of The development and integration of the GBA’s
bond issuance in Hong Kong and Macau in 2022 green finance profile has strategic significance for
were RMB78.908 billion and RMB28.419 billion the nation’s sustainable development.
respectively, accounting for 21.1% and 7.6% of
the total green bond market in the GBA10. Cross-border finance
9 China Sustainable Debt: State of the Mar- As the key milestones for the bilateral
ket Report (2022), Published jointly by the Climate opening of the financial markets in Hong Kong
Bonds Initiative, China Central Depository & Clearing and Shenzhen, the cross-border connectivity
Research Center (CCDC Research) and CIB Economic measures, such as the Cross-border Wealth
Research and Consulting (CIB Research). Management Connect, the Shenzhen-Hong Kong
10 http://www.gzgfa.org.cn/uploads/ueditor/ Stock Connect and Bond Connect continued to
file/20230425/1682390738504454.pdf improve and upgrade, and greatly enhanced the
overall competitiveness of the financial markets
in the GBA.
• Cross-boundary wealth management
connect
On 10 September 2021, the Implementing
Rules for the Pilot Scheme of Wealth
Management Connect (WMC) in the Greater
Bay Area was simultaneously released in
Guangdong, Hong Kong and Macau. The eligible
80
