HKMA lines up financial partners for ‘one belt, one road’ projects
The Hong Kong Monetary Authority on Monday signed agreement with two international organisations as it separately launched an office to develop Hong Kong as a fundraising centre for the many infrastructure projects in Beijing’s “one belt, one road” scheme which is expected to require funding levels of US$8 trillion through to 2020.
The 4pm launch ceremony of the Infrastructure Financing Facilitation Office (IFFO) was attended by Hong Kong Financial Secretary John Tsang Chun-wah. An hour before the IFFO launch, HKMA chief executive Norman Chan Tak-lam signed two separate memorandum of understandings with two international organisations – one with Global Infrastructure Hub (GI Hub) chief executive Chris Heathcote and the other with International Finance Corporation (IFC) executive vice-president Philippe Le Houerou.
The agreements will establish a framework for them to cooperate on any fund raising projects. The IFFO and the two MOUs are designed to strengthen Hong Kong’s role as a fund raising centre,with some analysts expecting investment in Asian infrastructure projects to reach US$8 trillion in the years ahead,boosted by Beijing’s one belt policy that aims to finance infrastructure projects from India to Southeast Asia and the Middle East in a bid to promote trade and economies in the participating countries.
Tsang said at Monday’s ceremony that IFFO will play a vital role to help Hong Kong develop as a fund raising centre for the many infrastructure projects in the Asia region.
“The ‘belt and road’ projects will be golden opportunities for Hong Kong to strengthen its role as a fund raising centre. With unparalleled connections with mainland China and other Asian markets, as well as its financial market, Hong Kong is well placed to serve as the centre for project financing and asset management projects in the region,” Tsang said.
He added that both the stock and bond markets and banking facilities in Hong Kong could handle these fund raising needs.
