Xu Zhengyu: Hong Kong's progress in green finance is significant, with the total amount of green and sustainable bonds ranking first in Asia for seven consecutive years.

On September 1st, the Financial Secretary and Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, spoke about the latest developments in green and sustainable finance in Hong Kong. He stated that Hong Kong has been actively leveraging its status as an international financial center to attract international funds to finance high-quality green projects and promote the green transformation of the economy in the region. The total amount of green and sustainable bonds issued in Hong Kong in 2024 exceeded $84 billion, a 50% increase from 2021. Of this amount, approximately $43 billion worth of green and sustainable bonds were issued in Hong Kong, accounting for about 45% of the total in the region, and have been ranked first in the Asian market for seven consecutive years since 2018. He mentioned that Hong Kong has made significant progress in promoting various measures and market developments, including the government's sustainable bond program, diversifying financing channels for green projects and companies, developing carbon markets, sustainable disclosure, promoting financial innovation, and constructing cross-sector ecosystems. (1) Government Sustainable Bond Program: The government has been promoting the development of Hong Kong's green finance and green bond market through the issuance of green bonds. As of June this year, the government has successfully issued approximately HK$240 billion worth of green bonds, covering Hong Kong dollars, Renminbi, Euros, US dollars, and various tenors, providing important benchmarks for potential issuers in Hong Kong and the region. The government has financed 116 eligible green projects through this program. (2) Diversifying Financing Channels for Green Projects and Companies: Since 2021, several local governments in mainland China have issued offshore Renminbi local government bonds in Hong Kong. As of July this year, the total cumulative amount reached 40 billion Renminbi, including green bonds, blue bonds, sustainable bonds, and social responsibility bonds. In addition, the government has been committed to developing Hong Kong into a more diversified and deeper financing platform and has introduced several market development measures in recent years. Among them, the Stock Exchange of Hong Kong (HKEX) implemented a special tech company listing mechanism in March 2023 after consulting the market, facilitating the listing and financing of profitable special technology companies that have not yet met the current main board qualification tests. The mechanism currently covers five major tech industries, including new energy and energy conservation and environmental protection, to meet the financing needs of companies at different development stages, facilitating tech companies to attract international capital and expand their business. (3) Carbon Market Development: The government has been supporting and promoting the development of the carbon market in Hong Kong. HKEX introduced the international carbon market Core Climate in 2022, the only carbon market that provides Hong Kong dollar and Renminbi settlement for trading international voluntary carbon credits products. The number of participants reached 100 by the end of last year. In addition, HKEX has signed cooperation memorandums with several mainland carbon exchanges to share expertise and explore cooperation to jointly promote the development of the regional carbon market. (4) Sustainable Disclosure: In December last year, the "Hong Kong Sustainable Disclosure Roadmap" was launched, providing a clear path for large public entities to fully adopt the International Sustainability Reporting Standards (ISSB) by 2028. The Hong Kong Institute of Certified Public Accountants, as the developer of the Hong Kong Sustainable Reporting Standards, completed public consultation and released the comprehensive Hong Kong Sustainable Disclosure Standards that are aligned with the ISSB standards in December last year. The International Financial Reporting Standards Foundation issued jurisdiction descriptions in June this year and confirmed Hong Kong as one of the first jurisdictions aiming to fully adopt the ISSB standards. (5) Promoting Financial Innovation: The government is committed to promoting product innovation. The green bonds issued by the government include two batches of tokenized green bonds, which are respectively the world's first government tokenized green bonds and the world's first multi-currency digital bonds, fully demonstrating Hong Kong's advantages and leadership in integrating the bond market, green and sustainable finance, and financial technology. The government will normalize the issuance of tokenized bonds, and the Hong Kong Monetary Authority is preparing to assist the government in issuing the third batch of tokenized bonds. In addition, to actively expand the green financial technology ecosystem, the government launched the "Green and Sustainable Financial Technology Proof-of-Concept Funding Scheme" last year, providing initial funding to promote the wider application of promising green financial technology solutions in Hong Kong's commercial environment. The program has approved 60 projects, and these projects are undergoing proof-of-concept verification. (6) Constructing Cross-Sector Ecosystems: In 2022, the government launched the "Green and Sustainable Finance Training Pioneer Program" (Pioneer Program), available for local eligible employees, relevant professionals, and students and graduates studying related disciplines to apply. By the end of July this year, the Pioneer Program has approved over 7,600 applications, with a total funding amount exceeding HK$42 million. To continue supporting the training of local green finance talent, the Pioneer Program will be extended until 2028. The government also strengthens skills training and cooperation related to green and sustainable finance through large conferences, seminars, and other stakeholder engagement activities, including hosting the first International Carbon Market Summit in Hong Kong in April this year, and the upcoming second "Hong Kong Green Week" next week, providing a platform for dialogue and cooperation for stakeholders from different regions and sectors.