HK 'positioned' to become green tech, finance hub

Hong Kong is well positioned to become a global hub for green technology and finance, officials say, while admitting that the postpandemic recovery is not as strong as expected.

Financial Secretary Paul Chan Mo-po said the government supports various programs to develop green technologies.

The administration has provided different funding schemes to support such technologies, including the Innovation and Technology Fund and the Green Tech Fund, said Chan, adding that over HK$800 million has been approved for projects in areas that include net-zero electricity generation, green buildings and green transportation.

Hong Kong is currently home to more than 200 green technology companies and some of them have expanded into overseas markets, Chan added.

In November, GRST, a local startup that specializes in lithium battery technology, was awarded a 1 million (HK$9.86 million) cash by the Earthshot Prize launched by Britain's Prince William.

On green finance, the city has also seen strong growth, Chan noted, as over US$80 billion (HK$624 billion) worth of green and sustainable debts were issued or arranged in 2022, among which green bond issuance took up 35 percent of the Asian markets.

The Hong Kong Green Week, which takes place at the end of this month, will feature various forums to promote further interactions in green tech and finance, Chan said.

Chan is also set to deliver his budget speech on February 28 while the latest budget of Singapore, the city's rival hub, has announced an investment of over S$1 billion (HK$5.8 billion) in the artificial intelligence industry over the next five years.

This came as Secretary for Financial Services and the Treasury Christopher Hui Ching-yu refuted claims made by the former chair of Morgan Stanley Asia, Stephen Roach, who said "Hong Kong is over" due to its domestic politics, China's structural problems and worsening Sino-US relations, with the city's stock exchange among the world's worst-performing major stock markets.

But Hong Kong still has an advantage as a financial hub despite the recent weakness in the stock market, Hui said, adding that certain financial sectors - including asset management, risk management businesses and the bond market - are developing well in the city.

Hong Kong has issued more than US$500 billion in bonds in the past nine months - a 7 percent rise compared to the corresponding period a year ago, Hui said. And its financial talent will help the city develop high-value-added services such as family offices, he added.

Although Hong Kong's postpandemic economic recovery has been slower than expected, Hui said authorities will adopt various measures to enhance the city's financial competitiveness.

And on regulating the virtual asset market, Hui said the government will both strengthen supervision and investor education.