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Financial and Monetary Affairs
REIT Regime
In December, an updated Code on Real Estate Investment Trusts (REITs) took effect to provide. Hong Kong REITS with more flexibility in making investments.
Green and Sustainable Finance
The government plans to issue green bonds totalling HK$175.5 billion in the five years from 2021-22 under the Government Green Bond Programme, having regard to the market situation, to promote the development of green and sustainable finance in Hong Kong. In 2020, US$12 billion of green debt (including bonds and loans) was arranged and issued in Hong Kong, with cumulative green debt issuance amounting to over US$38 billion by the end of 2020.
In May, the HKMA and the SFC established the Green and Sustainable Finance Cross-Agency Steering Group to coordinate the management of climate and environmental risks to the Hong Kong financial sector. In December, the group promulgated a strategic plan.
In October, the SFC launched a public consultation on the proposed requirements for fund managers to incorporate climate-related risks into their investment and risk management processes and provide investors with appropriate disclosures.
In order to promote green and sustainable finance in the region, the HKMA co-launched the Alliance for Green Commercial Banks with the International Finance Corporation in November.
Insurance
Hong Kong is among the world's most open insurance centres, with one of the highest insurance densities in Asia. At the end of 2020, 69 of the 164 authorised insurers operating in the city were from other jurisdictions, and 13 of the world's top 20 insurers were authorised to conduct insurance business in Hong Kong. The city had 17 professional reinsurers, including most of the world's top reinsurers.
Annual Gross Premiums of Insurance Market
Chart 5
700
600
608*
500
567
515
HK$ Billion
489
400
452
300
200
100
0
2016
2017
2018
Year
2019
2020
* Provisional statistics
68