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Financial and Monetary Affairs

In May, the Central Government promulgated the Opinion on Providing Financial Support for the Development of the GBA, setting out concrete measures to promote financial development in the GBA. The Hong Kong Special Administrative Region Government and financial regulators work closely with Mainland authorities to deepen financial cooperation and implement policy initiatives along broad directions set out in the outline development plan and the opinion for opening up a broader market for the financial sector. In June, the HKMA, PBOC, and the Monetary Authority of Macao jointly announced the decision to implement Wealth Management Connect in the GBA. The scheme will enable GBA residents to carry out cross- boundary investment in wealth management products in the GBA through the banking systems.

For the insurance sector, the Central Government further extended for one year until 30 June 2021 preferential treatment under the China Risk Oriented Solvency System, which reduces the capital requirement on Mainland insurers when they cede business to qualified Hong Kong professional reinsurers. The Central Government also removed the eligibility requirement on years of operating experience for Hong Kong service suppliers to establish insurance loss- adjusting companies in the Mainland, and supported Mainland insurers to issue catastrophe bonds in Hong Kong and Macao by relaxing the requirements.

Belt and Road Initiative and International Cooperation

Asian Infrastructure Investment Bank and Asian Development Bank

Hong Kong continues to participate as a member of the Asian Infrastructure Investment Bank (AIIB) and of the Asian Development Bank (ADB) with the name 'Hong Kong, China, showcasing the principle of 'one country, two systems.

Hong Kong's capital markets and professional and financial services are well-positioned to support the AllB's operation, and as an international financial centre, Hong Kong contributes to the ADB's efforts in bridging the financing gap in the region. In 2020, the city's capital markets raised the equivalent of some US$1.22 billion under the ADB's Global Medium-term Note Programme.

HKMA Infrastructure Financing Facilitation Office

The HKMA Infrastructure Financing Facilitation Office (IFFO) has continued to serve as an important financing platform to infrastructure investors, thereby raising Hong Kong's international profile as an infrastructure and green finance centre. The IFFO has around 100 international partners, including multilateral financial agencies and development banks, project developers and operators, public sector entities and professional service firms.

Centre for Green Finance

In December, the IFFO's Centre for Green Finance and the International Finance Corporation co-hosted a webinar showcasing the best practices in sustainable business and climate finance. The two-day webinar attracted around 1,500 participants from around the world.

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