A joint report by the Hong Kong Trade Development Council (HKTDC) and the Association of Chartered Certified Accountants (ACCA) reveals that 99% of mainland Chinese businesses have committed to sustainable investments over the next three years. With growing government support for green development, Hong Kong has become the preferred hub for sourcing professional services, particularly in green finance and technology. The findings of the "Seizing Opportunities in China’s Sustainable Investment" report highlight that companies are increasingly aligning their practices with China’s environmental policies.
Hong Kong: Driving Green Finance
As the leading green finance hub in Asia, Hong Kong is well-positioned to support mainland companies in their sustainability journeys. The city’s capabilities in green bonds, green loans, and sustainable development solutions have been recognized by mainland businesses, which see Hong Kong as pivotal in helping them meet both environmental targets and international brand-building goals. Irina Fan, Director of HKTDC Research, noted that Hong Kong’s growing expertise in green finance can help drive sustainable investment across China, especially within the Guangdong-Hong Kong-Macao Greater Bay Area.
Challenges and Opportunities in Green Practices
While mainland businesses are optimistic about green investments, they face certain challenges. The report found that 82% of companies cite cost pressures as a primary barrier to implementing sustainable practices. Many firms remain uncertain about the short-term financial returns on green investments. However, 70% are considering green finance options, such as green bonds and loans, to address these issues. Sam Chen of ACCA China highlighted that green finance is increasingly seen as crucial for businesses looking to balance profitability with sustainability.
Building a Sustainable Future with Green Finance
The report also identified a lack of familiarity with available green financing options among Chinese businesses, with many uncertain about how best to tap into green capital markets. Despite this, 71% of respondents expressed a willingness to explore these opportunities. Wing Chu, Principal Economist at the HKTDC, emphasized the importance of green finance in overcoming cost pressures and promoting long-term value creation. As mainland companies continue to expand sustainably, Hong Kong is poised to play a critical role in their success.
The Role of Green Financing in China’s Economic Transformation
Green financing is still in its early stages in China, but businesses are increasingly aware of its potential. Many survey respondents indicated an interest in transitioning from traditional financing models to more sustainable ones, recognizing the long-term benefits of doing so. The report suggests that Hong Kong’s professional services sector can guide companies through this transition, offering tailored solutions to meet their unique needs.
Opportunities at the Belt and Road Summit
In support of these developments, the Hong Kong Special Administrative Region (HKSAR) government and the HKTDC will host the ninth edition of the Belt and Road Summit in September. The event will feature discussions on green finance, ESG strategies, and sustainable infrastructure, aiming to foster greater collaboration between mainland companies and international partners. The summit will further showcase Hong Kong’s role as a global hub for green industry and sustainable investment.