Hong Kong Finance one of the green development road pointing the way

How much wealth is in your life is not determined by how much money you can make, but by how you invest in financial management. We must seize the opportunity, and the opportunity is left to the prepared. In the face of finance, vitality may emerge in the next second.

The global economy has continued to shift from extensive to intensive development and has continued to transform and upgrade from traditional industries to new environmental protection industries. Today, the development of finance is also approaching a green development path. Among the major financial businesses in Hong Kong, the development trend of green finance has gradually become clear, becoming a rising star in Hong Kong’s financial business.

1. Development status of green finance in Hong Kong

Thanks to the strong support of the Hong Kong Special Administrative Region Government for green finance, it has continuously introduced escort-based green finance policies. Hong Kong’s green bond market and green loan market have become the brightest highlights in Hong Kong’s green finance. In order to better implement green financing services, the Hong Kong government has launched a green finance certification program and issued a high amount of green bonds. At the same time, it has also established a green finance association to lay the foundation for the development of green finance.

At present, the trading volume of green bonds in Hong Kong has increased significantly each year compared with the previous year, and the scale of development has become larger and larger. Due to Hong Kong Financial hub, Hong Kong’s green bond issuers are diversified, especially as more and more mainland companies go to Hong Kong to issue green financial bonds.

At the same time, the growth rate of green loans in Hong Kong is also accelerating. To date, Hong Kong’s financial institutions have exceeded the average loan in green loans, and the proportion of green loans has also increased year by year. With the government’s continuous guidance on green finance, Hong Kong’s finance will continue to move towards green development.

2. The impact of the Belt and Road Initiative on Hong Kong’s green finance

After China proposed the national strategy of the “Belt and Road” initiative, Hong Kong’s green finance development has gained tremendous development opportunities. First of all, the economic strength of the Chinese mainland has been continuously strengthened, the complete industrial chain has been continuously upgraded, and the annual demand for green industry financing has continued to rise, providing a huge market for the development of green finance in Hong Kong.

Green loans and green bonds have opened the way for Hong Kong finance to enter the Mainland market. Under the Belt and Road Initiative, countries along the route can enjoy a certain degree of resource interconnection. Hong Kong can take advantage of its financial center to lead its financial development to countries along the Belt and Road, and expand the financial service target to entire Asia and even global.

3. What else is needed to further develop green finance

Although the current trend of green finance development in Hong Kong is good, two aspects that need to be improved to ensure the sustainable and healthy development of green finance.

(1)Hong Kong needs to improve the institutional framework.

The sustainable and healthy development of Hong Kong’s green finance is inseparable from the guidance and control of green finance policies and systems by the regulatory authorities, especially in terms of supervision and product innovation. We need to better formulate the corresponding system and build a Better financial investment environment.

(2)Hong Kong needs to continue to introduce incentive fiscal policies.

The development of green finance requires continuous government guidance. For example, the reduction of taxes and fees during the issuance of green bonds and the discount of green loans can continue to promote the vitality of green finance.

Hong Kong Finance is one of China’s important economic and financial centers. Hong Kong has a high international status. Therefore, the sustainable and healthy development of the Hong Kong free economy is an important goal for the healthy development of the entire country’s finances. The continuous development of green finance will lead Hong Kong’s finance to a healthier tomorrow.

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