News Content

Hong Kong Trade and Development Council pitches for Silk Road role

HONG KONG's financial expertise and regulations would make it an ideal basis for fundraising for China's One Belt Silk Road initiative, says HK Trade Development Council director Nicholas Kwan, reports London's Daily Telegraph.

China last year launched the HK$40 billion (US$5.8 billion) Silk Road Fund to finance projects along the east west routes, and more recently initiated the Asian Infrastructure Investment Bank.

Mr Kwan said Hong Kong's strengths in international finance and asset management can support these institutions, which have both attracted interest from emerging and developed economies.

Transport networks and infrastructure projects would get priority in the Belt and Road Initiative, he said, adding that Hong Kong had "experience in making full use of a harbour, effectively managing an airport, and operating subways" that would be "valuable to the mainland reforms".

Hong Kong could also help maintain good neighbour relations, he said, pointing out that the region is negotiating a free trade agreement with the Association of Southeast Asian Nations, and has concluded investment promotion and protection agreements with Bahrain and Myanmar.

This year, Hong Kong will negotiate similar agreements with the United Arab Emirates and Russia, said the report.

Hong Kong could also help maintain good neighbour relations as it is negotiating a free trade agreement with the Association of Southeast Asian Nations.

Geographically, Hong Kong is well situated on the Maritime Silk Road, as it already provides 350 shipping services a week to more than 500 destinations.

Meanwhile, Hong Kong International Airport is the busiest air-cargo hub in the world, handling 4.4 million tonnes of cargo and operating about 1,100 flights a day.

A third runway is on the way and on completion will increase the airport's handling capacity to 100 million passengers and nine million tonnes of cargo annually by 2030.

Hong Kong's labour force was also valuable, Mr Kwan said. "For young Hong Kong people seeking more development opportunities, the mainland is the perfect choice, as it's developing at high seed."