HONG KONG:

ASIA’S GREEN FINANCE HUB

How Hong Kong’s traditional strengths in financial services are
planting the seeds for a new, green financial ecosystem.
HONG KONG: ASIA’S GREEN FINANCE HUB 2

Contents
3 Executive summary
4 Introduction
5 Can green finance fund a sustainable future?
6 Climate change risks expose businesses
7 Hong Kong: The green financing hub
8 How standardised reporting allows green finance to flourish
10 The growth of green financial instruments
11 Green financial products: Supply and demand
12 Greening the financial system
13 Tapping into the Global-China conduit
14 From global financial hub, to green finance hub
HONG KONG: ASIA’S GREEN FINANCE HUB
EXECUTIVE SUMMARY
In this paper, we examine the rise of green and sustainable
financing, a nascent field fuelled by the existential threat
of climate change. Rising temperatures are triggering risks
for business, especially transitional risks, as economies
increasingly look to low-carbon models.
Central banks globally agree climate risks are financially
material, and businesses can ill afford to ignore them. Asia
is particularly at risk. A massive reallocation of capital
is needed in the region to mitigate the impact of global
warming. As Asia’s leading financial hub, Hong Kong is
developing a green financing ecosystem that can address
this need.
We spoke to experts from the private and public sectors in
both Asia and Hong Kong on how Hong Kong is developing
a green finance ecosystem and hub. The city is using its
3
financial and legal frameworks to develop green finance
regulations, standards, reporting and certifications.
Supported by government investment, public sector
resources and private sector expertise, Hong Kong is
developing a fast-growing suite of green products and
services. These include green and sustainability-linked
bonds, loans and funds, which are buoyed by market
appetite from retail and institutional investors.
Hong Kong can also benefit from its geo-strategic location
next door to Mainland China, which has emphasised a
green economy and financial system.
The paper shows the reader the growth, scale and
opportunity of green finance and its potential to offer
boards and c-suites a way to lessen risk, lower funding
costs, enhance returns, and boost competitiveness.
HONG KONG: ASIA’S GREEN FINANCE HUB
INTRODUCTION
THE CLIMATE EMERGENCY
COSTS US ALL
Climate change is a direct existential threat that is nearing
the point of no return, warned United Nations Secretary-
General António Guterres in 2018. The average global
temperature has risen by about 1.1°C since the pre-
industrial era and the ocean has warmed by half a degree.
Increasing temperatures, rising sea levels and more severe
and unpredictable weather patterns are triggering food
security, water resources and human health concerns.
African and Asian countries are particularly vulnerable
to climate change. In Asia, the Global Climate Risk
Index identifies South and Southeast Asia as especially
exposed, due to a combination of developing economies,
geographic location, densely populated low-lying areas,
and insufficient resilient infrastructure.
This is having a measureable impact on economic
prosperity, development and growth. A 2016 report by the
London School of Economics says the global financial
value at risk from climate change could be as high as
17% of all assets, depending on how much temperatures
4
rise. In the Asia-Pacific, a 2019 report by the Economist
Intelligence Unit forecast that climate change will cause
the region’s economy to contract by 2.6% by 2050.
Environmental factors are also taking a toll on economies
and societies. According to the Asian Development Bank
(ADB), damage from natural disasters in the Asia-Pacific
US$1.7 TRILLION
The amount the ADB estimates will need to be spent each
year until 2030 in Asia on infrastructure that maintains
growth and responds to climate change.
reached an estimated US$76 billion a year in the past
decade, more than double that of the previous decade.
“Climate change poses challenges for Asia that have the
potential of being even more severe than for Western
developed countries, where climate risks get far more
attention,” says Ashley Alder, the chief executive officer of
Hong Kong’s Securities and Futures Commission (SFC).
HONG KONG: ASIA’S GREEN FINANCE HUB
CAN GREEN FINANCE
FUND A SUSTAINABLE
FUTURE?
Green and sustainable finance focuses on environmental
and sustainable aspects, such as tackling climate change
and scaling up investments that provide environmental
benefits. This investment is urgent—to limit global
warming, a massive reallocation of capital is required. The
ADB estimates US$1.7 trillion will be needed each year
until 2030 in Asia on infrastructure that maintains growth,
tackles poverty and responds to climate change.
Along with the pressing need for green financing, climate
change is fundamentally changing the way capital is
raised, managed and assigned in Asia. “Climate change is
having a real impact on the supply of capital, on the cost
of capital, and on what future funding arrangements are
likely to look like in the region,” says Mark Konyn, chief
investment officer at the Hong Kong-based insurer AIA.
A key part of this transition involves shifting from
the traditional financial model of creating value for
shareholders, to a model that takes heed of non-financial
factors, such as environmental, social criteria and good
governance (ESG). While there has been some debate
about how ESG investing affects returns, an analysis of
over 2,000 academic studies carried out by the asset
management firm DWS and the University of Hamburg
showed ESG had an overwhelmingly positive impact
on corporate financial performance, with only one in 10
studies finding a negative link. “Businesses have a broader
responsibility to their stakeholders beyond just driving the
bottom line to deliver the profits and the dividends that
accrue to the shareholders,” says Mr Konyn.
5
To pursue this type of sustainable growth, companies
will need to take into account emissions, resource use,
waste management and biodiversity. Capital markets,
particularly the bond market, will play a key role in
financing this transition. According to a February 2019
“Climate change is having a real impact on
the supply of capital, on the cost of capital,
and on future funding arrangements.”
Mark Konyn, chief investment officer, AIA
report by the International Organization of Securities
Commissions (IOSCO), there will be increased
demand for innovative products, such as green bonds,
renewable energy investments and sustainable funds
to mitigate and adapt to a changing climate, and
greater use and incorporation of ESG criteria when
deciding on investments.
What’s in a name? Green finance explained
The terms green finance and sustainable finance
are often used interchangeably. Broadly, sustainable
finance aims to move money towards meeting the
United Nation’s Sustainable Development Goals and
takes ESG impacts into account. Green finance, which
is often seen as a subset of sustainable finance,
tackles climate change and focuses on investment
with environmental benefits measured against a set
of recognised standards.
HONG KONG: ASIA’S GREEN FINANCE HUB
CLIMATE CHANGE
RISKS EXPOSE BUSINESSES
In Asia in general, and Hong Kong in particular, the risks
created by climate change are becoming a key concern
for businesses.
Companies have to manage the risks that stem from
a changing climate, such as direct physical risks to
property, people and business operations from extreme
weather hazards and natural disasters. However, even
“People used to think about credit risk and
market risk, but we are now forced to deal
with climate risk.”
Darryl Chan, executive director (external),
Hong Kong Monetary Authority
those companies that do act may also incur losses
from transitional risks, as the economy re-values assets
because of new policy, technology or market sentiment
on the path to low-carbon growth. Hong Kong, as a major
financial and commercial centre, is particularly exposed
to complex transition risks that may involve policy and
regulation, technology, market and reputation risks.
These risks need to be well managed, or it could ruin long-
term returns. “People used to think about credit risk and
market risk, but we are now forced to deal with climate
risk,” says Darryl Chan, executive director (external) of the
Hong Kong Monetary Authority (HKMA). “We have to look
6
at the way banks provide loans. What is the risk of physical
damage to properties financed by bank loans because of
natural disasters? Is there sufficient protection for banks
if anything happens to properties financed by their loans?
That’s the climate risk.”
For those companies that do not respond to the changing
climate, the risk of inaction is even greater. “As a corporate
entity, or as an investor, ultimately you’ll be left behind, you
won’t be current. I think that’s the real risk,” says Mr Konyn.
While Asia faces considerable risks and vulnerabilities
due to climate change, the continent also possesses
the skills, capacity and investment to build, finance
and develop a safer and cleaner future. At the UN
Asia-Pacific Climate Week meeting in September 2019,
participants agreed the Asia-Pacific region could lead
the global transformation towards a low-carbon and
resilient economy.
If this is to be successful, Asia will look to financial centres
like Hong Kong to scale up green services across capital
markets, banking, investment, fintech and insurance.
“Hong Kong, Asia’s key finance hub, must play a leading
role to mobilise the private sector to fill the huge funding
shortfall to finance the transformation to low-carbon
economies,” says Mr Alder.
HONG KONG: ASIA’S GREEN FINANCE HUB
HONG KONG:
THE GREEN FINANCING HUB
Tackling climate change and moving to a low-carbon
economy requires a drastic overhaul of the way markets and
companies are shaped. “It takes resources, it takes planning,
it takes policies, it takes the buy-in from senior executives
and the board, and it takes administration. These are not
things you can do overnight,” says Mr Konyn.
However, as the world’s third-most competitive financial
centre, Hong Kong is well-positioned to build the sustainable
finance ecosystem and become a key green financing hub.
“Hong Kong is ready to play our
part in green financing.”
Carrie Lam, chief executive, Hong Kong
The city has established, robust standards and reporting
frameworks, and the institutions, talent and capabilities to
expand and adapt these frameworks to new green products
and standards. And, its geo-strategic location provides
access to Mainland China—the world’s largest carbon
market, and Asia-Pacific’s leading issuer of green bonds.
7
Finally, Hong Kong’s political administration and
leadership sees green finance as a priority for the
territory’s economic development, and its government
provides top-down support and investment. Speaking
at a 2018 seminar, Carrie Lam, chief executive of Hong
Kong said, “The strong demand for green funding and
for green investment opportunities have led to the
exponential growth in global green finance, including in
the issuance of green bonds. Hong Kong is ready to play
our part in green financing.” Moreover, looking forward
to the 6th Annual Climate Business Forum co-organised
by HKMA and the International Finance Corporation of
the World Bank Group next month, James Lau, Secretary
for Financial Services and the Treasury, highlighted Hong
Kong’s vision “to be a hub for thought leadership and
international dialogue in green finance”.
“We seek to be a hub for thought leadership
and international dialogue in green finance”.
James Lau, Secretary for Financial Services and
the Treasury, Hong Kong
HONG KONG: ASIA’S GREEN FINANCE HUB
HOW STANDARDISED
REPORTING ALLOWS GREEN
FINANCE TO FLOURISH
Every financial system requires a robust framework
of institutions, regulations, standards and reporting
networks to ensure transparency, confidence and trust.
As the risks associated with climate change become
financially material to companies, investors demand
86%
The percentage of investors in Asia who thought
ESG factors were important, according to a 2019 report
by HSBC.
green products, and consumers demand that brands
adopt sustainable practices. In turn, this leads to a
corresponding demand for related regulations and
reporting standards.
A report by HSBC in 2019 on sustainable finance
and investing showed 86% of investors in Asia and
8
84% of issuers thought ESG factors were important.
“Environmental issues are acting as a catalyst to
motivate companies to start asking questions, to
better understand [environmental] issues and hopefully
move towards better disclosure and better governance
around those disclosures,” says Mr Konyn. This is a
view echoed by Pat-Nie Woo, a partner at KPMG China.
“Boards and C-suites need to know that disclosure of
ESG status is getting to that stage of being mission-
critical. It’s not about just compliance with regulators’
demands. They are going to be asked [about ESG]
by their bankers, their insurance providers, and their
investors,” says Mr Woo.
Hong Kong is taking the lead on refining and
developing a standardised reporting framework in Asia.
In 2018, the SFC published its green finance strategic
framework for developing the city’s green finance
sector. One aspect of the framework was a focus
HONG KONG: ASIA’S GREEN FINANCE HUB
on enhancing environmental and climate reporting,
which took into account recommendations from
the Task Force on Climate-related Financial
Disclosures (TCFD). The TCFD is a transnational
organisation of regulators and businesses that
develops guidelines for companies on how to disclose
their climate-related risks.
This ethos of transparency has been embraced by
Hong Kong’s private sector. A 2018 report by the UN
Sustainable Stock Exchanges Initiative showed the
city ranks number one when it comes to its growth
in disclosure. Businesses in Hong Kong realise that
ESG risks are “more than just a corporate social
TOP SPOT
HKEX is ranked number one among 35 exchanges for its
growth in disclosures, according to a 2018 report by the UN
Sustainable Stock Exchanges Initiative.
responsibility or a reputational issue”, says Mr Lau.
By reporting on ESG, companies are showing they
have strong management and long-term prospects, he
added. Hong Kong also has around 300 groups signed
up to the Global Reporting Initiative, an independent
standards organisation that helps businesses work
out their impact on climate change, human rights and
corruption. “If you can encourage disclosure first, then
you slowly build that sense of accountability longer
term,” says Mr Konyn.
In line with the SFC framework, and following a 2019
consultation that supported stronger reporting, the
Hong Kong Exchanges and Clearing Limited (HKEX)
announced in December 2019 that it would strengthen
ESG rules for the city’s listed companies. Starting 1
July 2020, it will be mandatory for boards to disclose
how they consider ESG matters, and companies will
need to disclose on how climate is impacting business.
HKEX has also shortened publication deadlines for
ESG reports. These changes reflect the exchange’s
commitment to both enhance Hong Kong’s ESG
regulatory framework and meet investor and stakeholder
expectations, says Grace Hui, the chief operating officer
from HKEX’s listing department.
9
This kind of standardised reporting, which is
consistent, comparable and based on reliable datasets
and methodology, allows investors to make decision-
useful choices. “People on the ‘buy-side’, like asset
managers, are asking for regulations because they
want comparability,” says Mr Alder. A 2019 SFC survey
of asset owners revealed all respondents were in
agreement: more disclosure was needed to identify
those firms with stronger ESG practices and reduce
“greenwashing”—the practice of falsely or misleadingly
portraying a company’s products as environmentally
sound. The disclosures which asset owners find most
useful go beyond marketing-style narratives of the
ESG philosophy and policy statements. Asset owners
look for outcomes and evidence of ESG impact in
addition to financial performance, consistency
between policies and practices, more supported
analysis of asset-specific ESG risks, as well as the
analytical tools used, results of corporate engagement
and voting track records.
Public-private-academic partnerships
One of the hallmarks of Hong Kong is the close
collaboration between the public sector, private
sector and academia. This is evident in the green
finance sector also.
The HKMA has set up a one-stop Centre for Green
Finance to help companies and banks better
understand how to become green, especially when
it comes to sustainable infrastructure and green
developments. The Hong Kong Quality Assurance
Agency (HKQAA) will train wealth and asset managers
and executives, and is actively taking part in developing
international standards for green debt instruments,
green finance and sustainable finance.
Meanwhile, local universities, like The University
of Hong Kong, are offering courses on corporate
social responsibility. Hong Kong officials are also
working beyond the city’s borders and contributing
to thought leadership globally by collaborating with
networks of central banks to develop green finance.
The SFC, for one, is leading IOSCO’s Asia-Pacific
regional committee in setting up a sustainable
finance working group to coordinate regulatory and
development efforts in the region.
HONG KONG: ASIA’S GREEN FINANCE HUB
THE GROWTH OF GREEN
FINANCIAL INSTRUMENTS
In October 2019, the research firm, BloombergNEF, reported
that global sustainable debt had surpassed US$1 trillion.
This sustainable debt market includes debt securities that
incentivise a borrower’s sustainability performance, as well
as green, sustainability and social bonds and loans.
The bulk of the growth in the sustainable debt market
comes from green bonds. According to financial services
firm Dealogic, issuance of green bonds in the Asia-Pacific
region hit record levels in 2019. Green bond issuance
in Asia-Pacific raised US$18.89 billion—with Mainland
US$12.8 BILLION
The size of Hong Kong Government Green Bond
Programme—one of the largest government-led green
bond issuance programmes in the world.
China’s green bond market accounting for US$8.13 billion
of this. Hong Kong played a significant role in this region-
wide trend. In May 2019, the Hong Kong government
raised US$1 billion from the sale of its inaugural green
bond. It was the first bond to be issued under the city’s
HK$100 billion (US$12.8 billion) green bond programme,
one of the largest government-led green bond issuance
programmes in the world.
Proceeds from green bonds are used to improve the
environment, combat climate change and transition to a
low-carbon economy. Among projects being considered
in Hong Kong are those centred on renewable energy,
10
energy conservation, pollution control, nature conservation,
biodiversity protection and clean transport. In total, green
bonds arranged and issued in Hong Kong in 2018 reached
US$10.8 billion, up from US$3.2 billion in 2017.
To encourage take-up, there are a number of incentives
available. The Pilot Bond Grant Scheme subsidises the
issuance costs (up to US$320,000) for first-time bond
issuers in Hong Kong, including green bonds. Meanwhile,
the Green Bond Grant Scheme subsidises the costs (up to
US$102,000) that issuers incur obtaining certification under
Hong Kong’s Green Finance Certification Scheme. This
certification scheme was designed by the HKQAA, which is
also offering certification for green funds in order to further
encourage investors to support green projects.
Green loans and loans linked to the sustainability
performance of the borrower have also surged. According
to data from market research firm Debtwire, 2019 saw a
sevenfold jump in the volume of these loans across Asia,
excluding Japan. Hong Kong entered the sustainability-
linked market in 2019, signing four such deals.
What are green, sustainability
and social bonds and loans?
These are financial instruments specifically
earmarked for projects with a positive environmental
or social impact, such as funding a renewable energy
project or waste management scheme, or financing
affordable housing or access to essential services.
HONG KONG: ASIA’S GREEN FINANCE HUB
GREEN FINANCIAL
PRODUCTS: SUPPLY
AND DEMAND
Green bonds are one of the most visible green financial
products, but Hong Kong plans to bring a variety of green
and sustainability-linked financial instruments to market.
The SFC is facilitating the development of a range of
green-related investments, including listed green financial
products and unlisted, exchange-traded and “over-
the-counter” green financial products. The SFC is also
working with HKEX on how it can develop and promote
the listing and trading of green financial products, such
as bonds, indices and derivatives.
This initiative is in line with public demand. A June 2019
survey by Hong Kong’s Investor and Financial Education
Council showed one in four retail investors wanted to know
more about green finance, with 7% saying they wanted
to invest in green financial products over the coming
year. One of the most popular green financial products
is sustainability-linked loans—corporate loans where the
interest rate is linked to sustainable key performance
indicators, such as reduced carbon emissions.
Property developer Swire Properties was the first company in
Hong Kong to take up such a loan, one that is benchmarked
against its year-on-year ESG performance targets. In July
2019 it converted an existing HK$500 million loan (US$63.8
million) with Crédit Agricole CIB into a sustainability-linked
loan. Under this new type of loan, Crédit Agricole agreed
to reduce the interest rate each year if Swire Properties
met two conditions. Firstly, the real estate developer had to
retain its listing on the Dow Jones Sustainability World Index
(DJSI World), and secondly it had to reduce its “energy use
intensity” to a set target for its Hong Kong portfolio.
11
The loan is being used to finance green projects, such as
new energy saving technologies and green buildings. It
helps Swire Properties meet the ESG targets established
under the company’s Sustainable Development 2030
strategy, and allows the organisation to save money. “The
more we achieve the more we can save,” says Fanny Lung,
finance director at Swire Properties. Staff working for the
company can also see how meeting ESG targets translates
into dollar savings. “This is a very powerful link because that
gives us more incentive internally to drive more initiatives on
the sustainable development front,” says Ms Lung.
Being known for taking a sustainable approach to
financing has also enabled Swire Properties to enhance
its brand reputation, retain staff, and attract the interest
of bankers and investors. “You can monetarise the upside
to differentiate yourself from the other competitors in the
market,” says Ms Lung.
The Hong Kong US$10.8
billion
green bond market
US$3.2
billion
US$1.6
billion
US$0.3
billion
2015 2016 2017 2018
HONG KONG: ASIA’S GREEN FINANCE HUB
GREENING
THE FINANCIAL SYSTEM
There is a global consensus that central banks should
take the lead in “greening” the financial system. In
Hong Kong, the HKMA is the territory’s central banking
institution. Aside from ensuring currency stability and
regulating Hong Kong’s financial system, the HKMA also
manages the Hong Kong Exchange Fund.
Valued at HK$4.2 trillion (US$539 billion), the Exchange
Fund keeps the Hong Kong dollar linked to its American
counterpart and helps ensure financial stability in the territory.
To “green” the fund, the HKMA is incorporating ESG principles
into its investment processes. Green and ESG investments
in the fund are given priority—as long as the long-term risk-
adjusted return is comparable to other investments.
This approach is part of the HKMA’s overall strategy
to emphasise responsible investment and sustainable
long-term performance. Other facets include sustainable
investing in renewable energy and green buildings and
incorporating ESG factors into the credit risk analysis of
the bond portfolio. The HKMA asks external managers
of its equities funds to follow established global ESG
and responsible ownership guidelines, while external
fund managers of its developed market equities
portfolios are requested to adhere to internationally
recognised ESG standards.
12
“When we do the evaluation of our external managers,
when we look at investment opportunities in private equity,
or all sorts of alternative asset sets, ESG is one of the
things that’s on our checklist,” says Mr Chan. The agency
also has plans to grow its green bond portfolio, create ESG-
themed mandates in equity investment, and include green
accreditation when considering investing in buildings.
The significance of the HKMA—Hong Kong’s largest asset
owner—embracing responsible, sustainable investment
practices has not been lost on the market. When the
HKMA applies this kind of ESG lens to their fund, it sends
a clear signal about the importance of managing money
under ESG principles, says Mr Woo. Such principles are
also being used in the city’s US$116 billion pension fund,
the Mandatory Provident Fund.
On top of greening its funds, the HKMA is also targeting
the city’s banks, since they are at the core of any green
finance overhaul. The way banks operate will impact how
climate risk is managed or reduced, the HKMA says. In the
first phase, which is set to be complete in the first half of
2020, the HKMA is developing a framework to assess the
“greenness baseline” of Hong Kong’s banks. Thereafter,
“tangible deliverables” will be set to promote green and
sustainable banking in a bid to address climate risk.
HONG KONG: ASIA’S GREEN FINANCE HUB
TAPPING INTO
THE GLOBAL-CHINA CONDUIT
China has embraced green finance. Chinese President Xi
Jinping has made environmental protection one of the
country’s top three priorities and approved a far-reaching
policy goal of establishing an “ecological civilisation”
built on a green financial system. Aside from its massive
issuance of green bonds, China has the world’s largest
carbon trading exchange, has set up five pilot zones to
test green finance innovations, and is aiming to introduce
mandatory ESG reporting in 2020.
Hong Kong can help support China’s green finance
aspirations by:
• Leveraging the city’s traditional role as a conduit of trade,
capital and talent both to and from Mainland China
• Acting as a catalyst to harmonise green standards
across China and Europe
• Meeting Mainland China’s large appetite for green
financing, and matching it with a growing international
supply of green capital
With China being a key player in green finance initiatives, our proximity to the Mainland
market, our well-established bond issuance infrastructure and our deep pool of liquidity means
Hong Kong is well positioned as the go-to green and sustainable finance market.”
Christopher Hui, executive director, Financial Services Development Council, Hong Kong
• Loaning capital to Mainland Chinese organisations
via green bond issues and green bank loans, which
allows Mainland banks to get cheaper financing
• Driving global capital into the Mainland’s green bond
market via Bond Connect—a mutual market access
scheme that allows investors from Mainland China and
overseas to trade in each other’s respective bond markets
“With China being a key player in green finance initiatives,
our proximity to the Mainland market, our well-established
bond issuance infrastructure and our deep pool of liquidity
means Hong Kong is well positioned as the go-to green
and sustainable finance market,” says Christopher Hui,
executive director of Hong Kong’s Financial Services
Development Council.
13
There is also increased co-operation between Hong
Kong and Mainland Chinese institutions around
green finance and ESG. Hong Kong is helping
streamline green financial product issuances and
harmonise standards across the two markets, through
its knowledge of both the local market and global
green financial standards. Another example is the
Green Finance Alliance. Launched by the Hong Kong
Green Finance Association (HKGFA), along with its
counterparts in Guangzhou, Shenzhen and Macao,
the alliance will host research and fund green finance
initiatives. This includes incubating green investment
in Guangzhou’s supply chain and Shenzhen’s water
treatment plants, as well as working on water risk
analysis and green building schemes.
Finally, on a broader strategic level, Hong Kong can also
support green financing under the The Guangdong-
Hong Kong-Macao Greater Bay Area (GBA) and the Silk
Road Economic Belt and the 21st-century Maritime Silk
Road (shortened to the Belt and Road Initiative or BRI).
Sustainable infrastructure projects that incorporate low-
carbon and sustainable development practices are a key
priority of the BRI. To support this, the HKGFA, which is
made up of 113 financial groups and green businesses
within Hong Kong, plans to launch a green project
database for the BRI.
The Central Government has also designated Hong Kong
as the green finance hub for the GBA. The green business
potential of the GBA is expected to jump fivefold from
US$90 billion in 2018 to US$450 billion in 2030. The
majority of sustainability-linked investments in the GBA
would go into renewable energy and transport projects.
HONG KONG: ASIA’S GREEN FINANCE HUB 14

CONCLUSION
FROM GLOBAL FINANCIAL HUB,
TO GREEN FINANCE HUB
Green finance will grow, but it needs the right ecosystem. However, challenges remain. The transitional risks will
Hong Kong’s biggest opportunity and challenge is to be a have to be managed. To succeed, Hong Kong will need
leader not just regionally, but globally, in the nascent area to take a multifaceted, multi-stakeholder approach that
of green finance. factors in environmental and economic impacts.

The city’s institutions, frameworks, capital, political The climate emergency is an existential one, particularly
leadership and geo-strategic location have equipped it in the Asia-Pacific, and the region will need the kind of
with the capacity, skillset and resources to help steer investments, products and solutions that Hong Kong is
global leadership of green finance. set to offer.
Produced by

This paper is produced on behalf of MANTICORE MANAGEMENT CONSULTING

PTE. LTD. from the editorial staffs of Manin Brothers Group.

While every effort has been taken to verify the accuracy of this information
MANTICORE MANAGEMENT CONSULTING PTE. LTD. can accept
any responsibility or liability for reliance by any person on this report or any of the
information, opinions or conclusions set out in this report.