Hong Kong's Financial Secretary, Paul Chan, revealed in his blog post on September 6th that more than 100 enterprises from Belt and Road regions have already listed on the Hong Kong Stock Exchange, boasting a combined market capitalization exceeding HK$340 billion. He also noted that a state-owned infrastructure company from Central Asia is planning to list in the city.
In the realm of bond financing, as of July this year, 82 listed bonds from Belt and Road regions have been issued in Hong Kong, raising over HK$470 billion in total. Additionally, in recent years, governments, public institutions, and enterprises from Southeast Asia, Central Asia, and the Middle East have successively issued offshore renminbi bonds, commonly known as "dim sum bonds," in Hong Kong.
Chan highlighted that over the past five years, the combined share of ASEAN, the Middle East, and Central Asia markets in Hong Kong's overall trade has risen to approximately 17%, with an average annual growth rate of nearly 10%. ASEAN has firmly maintained its position as Hong Kong's second-largest trading partner since 2010. On the investment front, Hong Kong's total direct investment in ASEAN reached US$16.5 billion last year, marking a nearly 1.4-fold increase compared to five years ago and accounting for close to 7% of ASEAN's total inbound foreign direct investment.
On the commercial side, the number of enterprises from ASEAN and the Middle East establishing operations in Hong Kong has surpassed 930, reflecting a growth of nearly 30% over the past five years. A survey by the Hong Kong Trade Development Council also indicates that the vast majority of mainland enterprises expanding into Belt and Road markets regard Hong Kong as their preferred overseas service platform.
The growth of trade and capital markets requires corresponding institutional support. With the renminbi's increasing share in regional trade settlement, Hong Kong, as the world's largest offshore renminbi hub, is providing stable support for currency diversification in regional trade. With strong backing from the People's Bank of China, the total quota for Hong Kong's RMB business funding arrangements has been further expanded to RMB 500 billion. Moreover, the central bank of Indonesia has signed a memorandum with the Hong Kong Monetary Authority and the People's Bank of China to promote direct settlement between the Indonesian rupiah and offshore renminbi for enterprises and institutions in Hong Kong, significantly reducing currency conversion costs for businesses.
Chan expressed Hong Kong's aspiration to further assist Belt and Road enterprises in expanding markets and lowering transaction costs, unlocking the region's growth potential. Hong Kong has signed comprehensive double taxation avoidance agreements with 43 Belt and Road jurisdictions, while its investment agreements and free trade agreements cover 20 and 14 economies, respectively. The "Go Global Task Force" established last year has assisted over 300 mainland enterprises in setting up or expanding their businesses in Hong Kong. The interlocking of institutions, capital, and high-growth services is making regional linkages and market connectivity faster, more tangible, and more efficient.
Looking ahead, Chan emphasized that Hong Kong will continue to leverage its unique advantages under the "one country, two systems" principle—from advancing hard connectivity projects, to aligning rules through soft connectivity, and to bridging distances between people through people-to-people bonds—contributing tangible efforts to building a community with a shared future for mankind.