Henry Tang hopes Beijing official names Hong Kong treasury centre for Asian Infrastructure Investment Bank
Former chief secretary tells Post such a declaration by Zhang Dejiang during his visit would be justified as city best placed to finance China’s development
Former chief secretary Henry Tang Ying-yen hopes the state leader overseeing Hong Kong affairs will declare the city the treasury centre for the Asian Infrastructure Investment Bank during his visit this week.
In an interview with the Post last week, Tang, a member of the standing committee of the Chinese People’s Political Consultative Conference, said Hong Kong was the best platform to finance infrastructure projects related to China’s “One Belt, One Road” global development strategy.
The proposal was endorsed by most Hong Kong delegates to the CPPCC.
“Given its strength in capital markets and its international connectivity, Hong Kong can play a crucial role in financing the AIIB’s infrastructure projects,” Tang said.
He added Hong Kong could finance the projects through debt issuance and private equity in the city’s bond market.
Tang said he did not expect Zhang during his three-day visit to state a preferred candidate in next year’s chief executive election.
In March, AIIB president Jin Liqun said Hong Kong could join the Beijing-led Asian Infrastructure Investment Bank as a sub-sovereign member by the end of the year.
Jin said he hoped to tap Hong Kong’s financial market to raise funds for the new 57-member multinational bank.
Meanwhile, Tang suggested the government fork out tens of billions of dollars to help achieve the goal of scrapping the controversial “offset mechanism” that allows bosses to use their portion of contributions to offset long-service or severance payments for employees.
“Retirement protection and severance payments are two different matters that should not be mingled,” he said. “The government’s financial support could help ease the burden of companies and phase out the arrangement in stages.”
When Leung Chun-ying entered the chief executive race in 2012, he pledged in his election manifesto to seek to lower the proportion of withdrawals by employers for the offset mechanism.
