Hong Kong emerges as key bridge for Chinese green-tech firms entering emerging markets

Hong Kong's deep pool of offshore yuan and its established sustainable-finance infrastructure position the city as a critical financing hub for Chinese green-technology firms expanding into emerging markets, senior banking executives said at an industry forum.

Offshore yuan liquidity as bridge

The city can channel capital into green and climate-resilience projects across developing economies by combining its sustainable-finance market, offshore yuan liquidity and professional services, Wang Huabin, deputy CEO of Bank of China (Hong Kong), told the forum.

"Hong Kong has also led Asia in sustainable finance for years … [and it] is well positioned as a bridge for Chinese green technology going global," Wang said.

Chinese companies in solar power, wind energy, batteries and other green technologies are increasingly taking their solutions overseas, particularly to the Global South.

Market dynamics and challenges

Executives from Bank of China (Hong Kong), DBS, HSBC and Standard Chartered spoke during a panel discussion at the forum, which was organised by the Hong Kong Green Finance Association and the Greater Bay Area Green Finance Alliance.

The annual event brought together policymakers, financiers and industry leaders to discuss sustainable investment amid rising geopolitical, trade and economic uncertainty.

Natalie Blyth, HSBC's global head of sustainable finance and transition, said that mainland Chinese companies have some of the "most dynamic low-carbon technologies" globally.

The bankers identified geopolitical fragmentation and high funding costs as factors now reshaping how capital is deployed in the global energy transition, though finding projects with strong returns has emerged as the key challenge.

Hong Kong's role as a "superconnector" relies on its ability to match offshore yuan liquidity with bankable green-infrastructure opportunities in developing markets.

Source: South China Morning Post