Hong Kong to launch second round of tokenised green bonds to inject some momentum into economy, chief banker tells summit

Hong Kong needs to be more proactive in striving for development opportunities and injecting some momentum into its economy, HKMA’s Eddie Yue tells Hong Kong Economic Summit 2024

The HKMA and the Hong Kong government will organise a ‘Green Finance Week’ in February

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Hong Kong’s Victoria Harbour, as seen from the International Commerce Centre. The issuance of green bonds and green loans in Hong Kong has risen from US$11 billion two years ago to more than US$80 billion in 2023. Photo: Felix Wong

Published: 8:31pm, 4 Dec 2023Updated: 8:41pm, 4 Dec 2023

Hong Kong will launch its second batch of tokenised green bonds in the coming months to inject “some momentum” into its economy, with the head of the city’s de facto central bank forecasting a soft overall economic environment next year.

The macroeconomic environment has been challenging, and it is not yet known how long it will take to reach the inflation targets of major central banks globally, Hong Kong Monetary Authority (HKMA) CEO Eddie Yue Wai-man said at the Hong Kong Economic Summit 2024 on Monday.

Interest rate increases in the United States will continue next year, thus Hong Kong’s interest rates will also be affected, Yue said. The global economy has begun to weaken slightly due to high interest rates and might stay soft in 2024, which will have an impact on Hong Kong’s exports as a small open economy.

“But it also means that Hong Kong needs to be more proactive in striving for our own development opportunities and injecting some momentum into our economy,” Yue said.

The issuance of green bonds and green loans in Hong Kong has risen from US$11 billion two years ago to more than US$80 billion in 2023, Yue said. More such bonds and loans will be issued in the future, he added.

Tokenising a note means recording the beneficial interests in a bond using distributed ledger technology, or blockchain, rather than through traditional computerised book entries.

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