Hong Kong’s proximity to mainland China, ESG regulations put city in front to become green finance hub: fund managers
- Hong Kong is a natural gateway to mainland China, where the funding needs to align businesses with ESG requirements are huge, Amundi’s Valerie Baudson says
- Hong Kong has mandatory regulations on reporting standards that are on par with the UK, Australia and Switzerland
Hong Kong has the potential to be a leading hub for green finance due to its proximity to mainland China, with sound regulations already in place for such types of investments giving the city a head start, according to top bankers.
“Hong Kong has two fantastic advantages in the ESG [environmental, social and governance] and green finance areas,” Valerie Baudson, CEO of Amundi, said at a panel discussion on “ESG investments – at a crossroad” at the Global Financial Leaders’ Investment Summit organised by the Hong Kong Monetary Authority (HKMA) on Tuesday.
The city is a natural gateway to mainland China, where the funding needs to manage the business transition are huge, Baudson said.
So it is natural for mainland companies to tap funds in Hong Kong to finance climate-related projects, making the city an obvious choice to become a leader in green finance in the region, added the head of French fund manager Amundi, Europe’s largest with €2 trillion (US$2.14 trillion) of assets under management.
The Hong Kong government has been promoting the city to develop into a hub for green and sustainable finance serving mainland Chinese and international companies. Green and sustainable debt issued in the city, including bonds and loans, increased by more than 40 per cent year on year in 2022 to US$80.5 billion. The city accounted for a third of such debt issued in Asia in that period.
