Following is a question by the Hon Yim Kong and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (April 27):
Question:
There are views pointing out that the development of green finance will enable Hong Kong to fully leverage its advantages as an international financial centre, and contribute to the national strategic goals of achieving carbon emission peak before 2030 and carbon neutrality before 2060 (the twin carbon goals). Some analyses have pointed out that the green and low-carbon investments required by the Mainland for achieving the twin carbon goals can amount to Renminbi (RMB) 100 trillion to 180 trillion, and the Hong Kong Monetary Authority has estimated that the volume of green and sustainable debt issued in Hong Kong in 2021 exceeded US$50 billion, many of which were RMB green bonds. Hence, the development potentials for green finance in Hong Kong is considerable. In this connection, will the Government inform this Council:
(1) given that the Government has carried out an assessment on the feasibility of developing Hong Kong into a regional carbon trading centre, whether it has formulated a timetable for setting up in Hong Kong an institution (e.g. an exchange) responsible for handling carbon emissions related trading; if not, of the specific reasons for that, and whether it will commence the relevant planning work;
(2) whether it will consider providing further subsidies or introducing other concessionary policies with a view to attracting Mainland institutions (particularly enterprises) to issue green bonds in Hong Kong; and
(3) of the measures in place to grasp the socio-economic opportunities arising from the achievement of the twin carbon goals as well as the green and low-carbon transformation in the Mainland, so as to develop green finance in Hong Kong, thereby further promoting the city's status as an offshore RMB hub?
Reply:
President,
By leveraging our advantages as an international financial centre, Hong Kong can facilitate matching between international capital and quality green projects, contribute proactively to helping our country achieve its "3060 Target" in relation to carbon emission peak and carbon neutrality, as well as propelling Hong Kong towards our carbon neutrality target by 2050 and promoting green transformation of our economy. The development of green and sustainable finance in Hong Kong offers promising prospects.
The reply to the Hon Yim's question is as follows:
(1) Formed by relevant Government bureaux and financial regulators, the Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) published in end March 2022 a preliminary feasibility assessment for Hong Kong to pursue carbon market opportunities and is of the view that Hong Kong's success factor in adding value to global carbon markets lies in our close links with the Mainland, which enables us to facilitate global capital flows into the Mainland's carbon markets. In addition, Hong Kong's green certification services at international level and familiarity with both Mainland and international standards will enable us to serve as a bridge to the world for Mainland which will, in turn, contribute to the development of the carbon market.
Specifically, Hong Kong can leverage the work of the relevant international institution on voluntary carbon markets (VCMs) and financial expertise to develop a centralised and on-exchange VCM, so that buyers of carbon credits from Hong Kong, Mainland and overseas can have an additional and transparent purchase channel. Meanwhile, Hong Kong can be a bridge to the world for Mainland China's carbon credits and the underlying projects under the China Greenhouse Gas Voluntary Emission Reduction Programme administered by the Ministry of Ecology and Environment. Hong Kong is the gateway between the Mainland and international markets and has unique institutional advantages in facilitating international capital flows into the Mainland. Hong Kong should leverage its strengths to proactively assist and integrate into national and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) developments, which are moving towards a comprehensive green transformation.
Based on the assessment, the Steering Group intends to proceed with the following next steps with a view to developing Hong Kong into a regional carbon trading centre:
(i) develop Hong Kong into a global, high-quality VCM, leveraging Hong Kong's status as a champion of international standards, a facilitator to channel global capital into the Mainland, and an international financial centre with a stable and mature regulatory system;
(ii) collaborate with relevant authorities and stakeholders to work towards establishing the GBA Unified Carbon Market in line with Mainland policies to strengthen GBA co-operation;
(iii) explore opportunities to link up international investors with the GBA Unified Carbon Market and potentially the national emissions trading system; and
(iv) strengthen co-operation with the Guangzhou Futures Exchange (GFEX) on carbon market development to enable Hong Kong to act as the Mainland's offshore risk management centre.
The Steering Group will consider which market and regulatory model would be the most appropriate, and prepare a detailed roadmap, implementation plan and indicative timeline after consulting market experts and relevant authorities.
The Hong Kong Exchanges and Clearing Limited (HKEX) signed a memorandum of understanding (MoU) with the GFEX in August 2021 with a view to driving a green and low-carbon market in the GBA and supporting sustainable development through the promotion of exchanges and co-operation in areas such as clearing, technology, marketing and investor educational efforts. The HKEX also signed a MoU with the Guangzhou-based China Emissions Exchange in March 2022 to explore co-operation opportunities in carbon finance, including jointly exploring the development of a voluntary carbon emission reduction programme in the GBA, with the aim of supporting the country's efforts to peak carbon emissions and reach carbon neutrality; and working together to share research and experience on carbon market financing and global carbon market standards, to help boost the internationalisation of the Mainland's carbon market. Moreover, Hong Kong's first carbon futures exchange traded fund (ETF) was listed on the HKEX on March 23, 2022, which extends the coverage of Hong Kong-listed commodity ETFs to carbon credits, an important asset class in the global drive to achieving carbon neutrality.
In addition, the International Platform on Sustainable Finance published in November 2021 the Common Ground Taxonomy (CGT) report, which could help define what activities are considered to contribute significantly to climate change mitigation as well as reduce the risk of green washing. The Steering Group will, with the aim of aligning with the CGT, explore developing a green classification framework for adoption in the local market which facilitates easy navigation among the CGT, the Mainland's and the European Union's taxonomies, aligning Hong Kong's regulatory standards with international best practice.
(2) As an international financial centre, Hong Kong has a large financial market and a sound world-class regulatory framework, bringing together global leading financial and professional institutions, green assessment and certification bodies as well as international investors. With these strengths and advantages, Hong Kong is well placed to develop into a green finance hub in the region.
Last year, the Shenzhen Municipal People's Government issued offshore Renminbi (RMB) municipal government bonds totalling RMB 5 billion in Hong Kong, including green bonds. In respect of interest paid or profit received arising from the debt instruments issued in Hong Kong by the Shenzhen Municipal People's Government, the Hong Kong Special Administrative Region Government (HKSAR Government) will exempt the payment of profits tax. This is the first time a Municipal People's Government issues bonds in Hong Kong, testifying to the strength of Hong Kong as a platform to issue RMB bonds, including green bonds.
The HKSAR Government launched a new Green and Sustainable Finance Grant Scheme (Grant Scheme) in May 2021 to provide subsidy for eligible bond issuers and loan borrowers to cover their expenses on bond issuance and external review services. The scheme has been well received by the industry. As at early April this year, over 60 applications have been approved under the Grant Scheme, involving a grant amount of over $70 million. Among the applications approved, many of them involved subsidies for covering the external review costs relating to green and sustainable loans. Lowering the minimum loan size threshold in respect of applications for subsidies for covering external review costs would facilitate relatively small enterprises in obtaining green financing. Therefore, we have lowered the threshold from $200 million to $100 million, with a view to benefitting more enterprises interested in green transformation and promoting the development of green finance in Hong Kong at the same time.
We will continue to take forward the relevant work on green finance through different channels, including maintaining liaison with the Mainland authorities (including the GBA) and promoting the Grant Scheme to encourage more Mainland entities to use Hong Kong's platform for green and sustainable investment, financing and certification. The Qianhai authorities also provide a subsidy of not more than RMB 2 million to Qianhai corporates that issue green bonds in Hong Kong, which will be conducive to attracting more bond issuances in Hong Kong by corporates.
(3) The Central People's Government promulgated the Outline Development Plan for the GBA in 2019, supporting Hong Kong's development into a green finance centre in the region. The Opinion on Providing Financial Support for the Development of the GBA subsequently promulgated in May 2020 encourages more GBA entities to make use of Hong Kong's platform for the financing and certification of their green projects and supports Guangdong incorporated financial institutions to issue green bonds and other green financial products in Hong Kong. Leveraging Hong Kong's strengths as an international financial centre and the gateway between China and the rest of the world, Hong Kong is well positioned to connect the flow of green and sustainable funds with the Mainland and the world to promote green investments and ecological civilisation in the Mainland.
The Government has successfully issued Government green bonds under the Government Green Bond Programme totalling over US$7 billion equivalent since May 2019, which were well received by the global investment community with oversubscription recorded for many times. In particular, we issued a total of RMB 5 billion green bonds for the first time in November last year, including a 3-year tranche and a 5-year tranche, setting an important benchmark for potential issuers. The Government also announced in February this year the offering details of the inaugural retail green bond for public subscription, of which the issuance was previously postponed due to the epidemic situation. The Government subsequently announced the relaunch of the subscription from April 26 to May 6, 2022 and combining the issuance targets of the last and the current financial years, so as to minimise issuance costs and administrative work. The target issuance size is HK$15 billion. The Government may further increase the issuance size to a maximum of HK$20 billion having regard to market conditions. We also doubled the borrowing ceiling of the Government Green Bond Programme to HK$200 billion last year and will, having regard to the market situation, continue to issue green bonds, including RMB green bonds, to provide a pricing reference for the market.
In addition, the Government plans to launch the Pilot Green and Sustainable Finance Capacity Building Support Scheme to provide subsidies for practitioners in the financial and other relevant sectors to participate in green and sustainable finance training and obtain relevant professional qualifications, so as to encourage them to enroll in the relevant training, and help build up the local green and sustainable finance talent pool. This will support the industry in capturing green finance opportunities and bring long-term economic benefits to Hong Kong. According to the current plan, the scheme will cover practitioners in the financial services and persons from relevant sectors who need to build up their knowledge in green and sustainable finance. Eligible courses or qualifications to be subsidised will be devised after taking into account views of relevant parties and other places' experiences. The scheme will last for three years with an estimated provision of $200 million.
We will continue to capitalise on the enormous green finance opportunities presented by the country's green development, work closely with Mainland authorities and the industry, with a view to facilitating more entities to make use of Hong Kong's financial and professional services for green and sustainable investment, financing and certification to support green enterprises and projects in the Mainland. At the same time, we are promoting talent development and capacity building to tie in with the industry efforts on strengthening resilience to climate risks, as well as encouraging more financial institutions, professional service providers and external reviewers to set foot in Hong Kong and enhancing Hong Kong's attractiveness as a one-stop platform, directing green capital to and from the Mainland and promoting RMB internationalisation.
Ends/Wednesday, April 27, 2022
Source: Hong Kong Special Administrative Region Press ReleaseDetails
LCQ12: Consolidating Hong Kong's position as international maritime centre
Following is a question by the Hon Yim Kong and a written reply by the Secretary for Transport and Housing, Mr Frank Chan Fan, in the Legislative Council today (May 25):
Question: The Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035 (the 14th Five-Year Plan) expressly proposes to expedite the development of a world-class port cluster and supports Hong Kong in enhancing its status as an international maritime centre. There are views pointing out that given the keen competition currently among various major ports in the Pearl River Delta, the Government has to keep abreast of the time, improve its development planning, and adopt more practicable and effective measures to consolidate Hong Kong's position as an international maritime centre. In this connection, will the Government inform this Council: (1) whether it has plans to update Hong Kong's port development planning in the light of the 14th Five-Year Plan and the new trend of Mainland port development in the Guangdong-Hong Kong-Macao Greater Bay Area; if so, of the time it expects to publish a specific white paper on port planning;(2) as it is learnt that there are insufficient premium logistics storage facilities in Hong Kong, whether the Government has considered conducting planning for the provision of more logistics sites in Kwai Tsing District or other districts, so as to tie in with the development planning of enhancing Hong Kong's status as an international maritime centre; if so, of the specific plans; and(3) as there are comments pointing out that, with the development of green ports becoming an international trend, and with shipping companies' demand for liquefied natural gas refilling and onshore power supply facilities for ships being on the increase, the setting up of the relevant ancillary facilities is one crucial factor in maintaining the competitiveness of a port, whether the Government will consider expediting the setting up of such facilities; if so, of the details and the implementation timetable? Reply: President, The Central Government has been clearly supporting the consolidation and promotion of Hong Kong's position as an international maritime centre. Hong Kong has a steadfast maritime tradition, with port, shipping and maritime services underpinning the development of the trading and logistics sector all along. The Government will continue to proactively develop and entrench Hong Kong's position as a high value-added maritime services centre and an important transshipment hub in the Asia Pacific region, so as to fully seize the immense opportunities arising from national planning. In fact, the Government has all along been enhancing the planning and development of the maritime and port industry through various policies. Announcement is made through the Chief Executive's Policy Address if there are important development plans. For example, the Government announced a number of initiatives in the Chief Executive's 2018 Policy Address to support and enhance the development of high value-added maritime services, including using tax measures to foster the development of ship leasing business in Hong Kong and setting up Regional Desks of the Hong Kong Shipping Registry (HKSR) of the Marine Department in selected overseas Economic and Trade Offices and Mainland Offices and Liaison Units etc. Besides, the Chief Executive's 2021 Policy Address also announced further developing high value-added maritime business services, including ship registration, ship finance and management, marine insurance, and maritime legal and arbitration services etc.; introducing tax concessions to attract members of the maritime industry to establish a business presence in Hong Kong; further expanding the overseas service network of the HKSR; as well as new initiatives such as developing smart port and green port. Having consulted the Environmental Protection Department and the Marine Department, our reply to various parts of the Hon Yim Kong's question is as follows: (1) Regarding development in Hong Kong Port (HKP) and consolidation of its position as an international maritime centre, the "Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035" (National 14th Five-Year Plan) endorsed by the 13th National People's Congress in March 2021 supported the positioning of HKP and the development of high value-added maritime services in Hong Kong for better integration into the country's development course. The "Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)" (GBA Development Plan) promulgated in February 2019 also expressed such support. The GBA Development Plan supports enhancing the overall international competitiveness of the Pearl River Delta port cluster, and emphasises a complementary and mutually beneficial system of ports to achieve synergy; whereas the National 14th Five-Year Plan mentions the functional co-ordination of ports in proactively and progressively taking forward the development of the GBA. As such, Hong Kong will continue to develop high value-added maritime services and leverage on the high efficiency, strong connectivity and coverage of the HKP for consolidating and enhancing its status as an international maritime centre. To strengthen the collaboration with the GBA ports, the Government will explore establishing communication mechanisms with ports in Guangdong. Furthermore, on the development of smart port etc., while the industry traditionally has relied heavily on manual operations and paper-based processes, it has in recent years started to embrace digitisation of port operations and leverage on innovative technologies to enhance their efficiency, so as to stay competitive and provide more convenient services for the customers. Through the Task Force on Smart Port Development formed under the Hong Kong Maritime and Port Board, the Government is working with the trade on the concrete proposal to drive the smart port development, with a view to further enhancing port efficiency and reducing cargo handling time and cost through streamlining and optimising the multi-party co-ordinated processes electronically. (2) The Government has been actively identifying suitable sites for supporting modern logistics development. We have concluded two feasibility studies on developing a multi-storey complex for container storage and cargo handling at a site in Tsing Yi and a multi-storey heavy goods vehicle carpark-cum-modern logistics complex at another site in Kwai Chung respectively, so as to support port and logistics operations. The Tsing Yi site was released through public tender on December 17, 2021, but the public tender was cancelled on February 23, 2022 due to the identification of the Tsing Yi site as one of the locations for constructing community isolation and treatment facilities in support of the Government's anti-epidemic work. For the sustainable development of the modern logistics industry, the Kwai Chung site was also put up for sale through public tender on March 25, 2022, and the tender invitation will close on July 15, 2022. We plan to conduct a feasibility study on another logistics site in Kwai Tsing area. Furthermore, under the Approved Hung Shui Kiu and Ha Tsuen Outline Zoning Plan, about 37 hectares of land have been designated by the Government for logistics development as well. We will continue to identify suitable sites and examine their feasibility for modern logistics development in collaboration with relevant departments. (3) As an international maritime centre, Hong Kong has been promoting the development of green port through different measures and encouraging the industry to adopt more sustainable shipping initiatives. To this end, Hong Kong becomes the first port in Asia to mandate ocean-going vessels (OGVs) to switch to low sulphur fuel while at berth. The Government has been collaborating with the Mainland to reduce emissions from vessels, including establishing jointly with the Guangdong Provincial Government a Domestic Emission Control Area in the waters of the Pearl River Delta Region that further tightened requirements for all vessels to use compliant fuel (i.e. low sulphur fuel or liquefied natural gas, LNG), irrespective of whether they are sailing or berthing. To further encourage the use of clean marine fuel by OGVs, the Government has also been examining measures to take forward the adoption of LNG in OGVs, such as actively exploring the use of the offshore LNG terminal newly constructed by the two power companies as a bunkering facility for OGVs, planning for LNG bunkering areas, and formulating technical requirements and related safety regulations and requirements for offshore LNG bunkering, etc. Relevant bureaux and departments of the Government have been working closely with the industry on the arrangements to promote LNG bunkering for OGVs in Hong Kong.
Ends/Wednesday, May 25, 2022Issued at HKT 15:25
Source： Hong Kong Special Administrative Region Press Release
Details
LCQ22: Enhancing the competitiveness of the securities market of Hong Kong
Following is a question by Dr the Hon Tan Yueheng and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (May 25): Question: According to the statistics released by an accounting firm, Hong Kong ranked sixth in the world in terms of funds raised through initial public offerings (IPOs) in the first quarter of this year, with the amount slumping nearly 90 per cent year-on-year to only about $13.6 billion, hitting a record low in nearly nine years. On the other hand, some members of the financial sector are of the view that, as announced by the Hong Kong Exchanges and Clearing Limited (HKEX) in March this year, the contents of the three strategic pillars (i.e. Connecting China and the World, Connecting Capital with Opportunities and Connecting Today with Tomorrow) to be implemented are relatively vague and general and lack concrete measures, and the pillars are unattractive to investors. In this connection, will the Government inform this Council: (1) whether it has conducted an in-depth analysis of the reasons for the slump in the amount of IPO funds raised in Hong Kong in the first quarter of this year; if so, of the details, including whether there were reasons other than the epidemic; (2) of the measures in place to boost Hong Kong's IPO fundraising market, as well as the specific implementation timetable; (3) whether it knows the specific measures that the HKEX has put in place in the short to medium term (i.e. three to five years) to implement the aforesaid three strategic pillars, as well as the new highlights and breakthroughs of such measures; and (4) whether it knows the specific proposals that the HKEX has put in place to pursue differentiated development, so as to cope with the competition from other exchanges in the region?Reply: President, In 2022, the uncertainties in global economy and financial markets have brought tremendous challenge to worldwide markets, among which the stock markets have been particularly volatile. The Government, the Hong Kong Exchanges and Clearing Limited (HKEX) and financial regulators have been closely monitoring market conditions to ensure that Hong Kong's stock market and financial system are operating in an orderly and smooth manner, while continuing to take forward market development and endeavouring to enhance the overall competitiveness of Hong Kong's listing platform. In consultation with the Securities and Futures Commission (SFC) and the HKEX, my reply to the four parts of the question is as follows: (1) In light of various macroeconomic factors such as heightened geopolitical tensions, uncertainty of COVID-19 situation, inflation and interest rate increase by major central banks, the leading financial markets around the globe have been relatively volatile in recent months. Initial public offerings (IPOs) have also been affected as issuers generally are more cautious. According to market information, the amount of fund raised through IPOs globally decreased by more than 50 per cent year-on-year in the first quarter. The ranking on IPO fund raised of other markets, such as the major exchanges in the United States and Europe, also declined. The ranking on IPO fund raised of Nasdaq dropped from the first in 2021 to the fifth in the first quarter, whereas the ranking of New York Stock Exchange and London Stock Exchange, which were the second and sixth in 2021 respectively, fell out of the global top ten places. As an international financial centre, Hong Kong's IPO performance was also affected by external factors. Notwithstanding this, the HKEX received 22 new listing applications in April 2022, and was processing a total of 168 listing applications as at the end of April. This reflects that the demand for listing has not slowed down. (2) Despite the short term market situation, the Government, SFC and the HKEX are committed to continuously strengthening the competitiveness of our fundraising platform, building a solid foundation for future development. Over the past few years, we implemented a series of enhancements to the listing regime in forging a more diverse, dynamic and sustainable listing platform, promoting the prosperity of the securities market. To cater for the fundraising needs of emerging and innovative companies, the HKEX launched a new listing regime in April 2018 to allow emerging and innovative enterprises that have weighted voting rights (WVR) structures and pre-revenue / pre-profit biotechnology companies to list in Hong Kong, and establish a new concessionary route for qualifying issuers to seek secondary listing in Hong Kong. As at the end of April 2022, a total of 74 companies had been listed through the new regime with $580.7 billion raised, representing over 40 per cent of the total fund raised through IPOs in the same period. Hong Kong has also become Asia's largest and the world's second-largest fundraising hub for biotechnology. The HKEX launched a listing regime for special purpose acquisition companies (SPACs) in January 2022, introducing a brand new listing avenue for emerging enterprises with potential. At the same time, the HKEX has implemented enhancement measures to allow Greater China companies without WVR structures which are not from innovative sectors to seek secondary listing in Hong Kong and offer greater flexibility for issuers seeking dual-primary listings. Such measures would further attract quality "China Concept Stocks" to list in Hong Kong and provide more choices to investors, thereby increasing market liquidity. The Financial Secretary announced in the 2022-23 Budget that, in order to cater for the emerging new economy in the Mainland in recent years and considering the fundraising needs of large‑scale advanced technology enterprises, SFC and the HKEX would review the Main Board Listing Rules and, having due regard to the risks involved, examine the revision of the listing requirements to meet the fundraising needs of such enterprises. The HKEX is approaching relevant market participants for views, with a view to putting forward concrete recommendations as soon as practicable. In addition, in response to market views, the HKEX commenced a review on the functions and positioning of GEM last year, and established a dedicated panel under the Listing Committee to handle the work concerned. The review will be conducted under the principle of further strengthening the competitiveness of Hong Kong as a global premier listing hub and enhancing the overall quality of the Hong Kong capital market. Alongside facilitating different types of enterprises to list in Hong Kong, the HKEX will take into consideration market attractiveness and liquidity, and safeguard the interests of the investing public. The HKEX is engaging different parties and will make reference to the experiences of similar markets in other places. (3) and (4) The HKEX unveiled in March 2022 its vision to build the "Marketplace of the Future", with a view to facilitating the two-way capital flows between East and West as well as delivering vibrant and diversified markets, thereby strengthening Hong Kong's position as an international financial centre. Building on Hong Kong's unique advantages in leveraging the strengths of our country and engaging the world, the HKEX put forward three strategic pillars, namely "Connecting China and the World", "Connecting Capital with Opportunities", and "Connecting Today with Tomorrow". The HKEX has devised concrete measures in the short, medium and long term under each of the three strategic pillars. With the continuous growth of the Mainland economy and the opportunities brought by Hong Kong's position in connecting the financial markets in the Mainland and the rest of the world, the HKEX will enhance Hong Kong's overall competitiveness relative to other overseas markets. The concrete details and measures on the HKEX's vision have been uploaded to its dedicated webpage www.hkexgroup.com/about-hkex/about-hkex/our-strategy. Overall speaking, leveraging on the Mainland strength, the HKEX will continue to bring the Mainland growth story to international investors, while facilitating Mainland enterprises to raise funds in Hong Kong and Mainland capital in offshore asset allocation through the Hong Kong capital market. By further developing the mutual access programme and growing its portfolio of Mainland-related product offerings, the HKEX's goal is to develop Hong Kong into Mainland's go-to offshore hub for fundraising, trading, and risk management. In the short term, the HKEX will work to expand the mutual access schemes, take forward the inclusion arrangements for exchange traded funds (ETFs) in Stock Connect and allow stocks traded via the Southbound Trading of Stock Connect to be denominated in Renminbi. The HKEX will also look into including more products and services under the mutual access programme, such as listed bonds, and expand the suite of risk management tools in equity and fixed income products. In addition, the HKEX is committed to enhancing the depth, vibrancy and diversity of its markets, strengthening Hong Kong's position as a premier fundraising, risk management and trading hub by improving the primary market attractiveness and enabling more efficient trading, clearing and settlement. Apart from the initiatives mentioned in part (2) and this part as above, the HKEX will also strive to optimise the efficiency of IPO price discovery, as well as to enhance the trading hours of derivatives products and trading calendar of mutual access programmes, thereby enhancing market structure. In face of the new trends including digitisation, tokenisation, big data, personalised finance, and the new mission of incorporating environmental, social and governance (ESG) considerations, the HKEX is actively developing digital capabilities and exploring new opportunities in digital assets, ESG, private markets and other emerging sectors, leveraging its data as well as agile and modern infrastructure to develop new business. In the short and medium term, the HKEX plans to launch FINI (Fast Interface for New Issuance), an electronic IPO settlement platform, and will look into the introduction of ESG equity index derivatives and voluntary carbon credit trading, as well as enhance its Sustainable and Green Exchange (STAGE). Over the next few years, the HKEX will, in collaboration with the Government, take forward various business reforms following the above plans and drive the development of the local financial services sector in collaboration with the Government, with a view to supporting the development of the financial market for the future of Hong Kong.
Source: Hong Kong Special Administrative Region Press Release
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