The Hong Kong government is determined to make Hong Kong a green finance center. Chief Executive John Lee attended the Hong Kong Association of Banks Distinguished Person Lecture and Luncheon today and stated that the government hopes Hong Kong will become the world's first jurisdiction to align local sustainable disclosure financial reporting standards with international requirements. Therefore, a roadmap for adopting the International Sustainability Standards Board (ISSB) sustainable disclosure financial reporting standards will be announced in the coming weeks.
John Lee pointed out that bond issuance is at the core of green finance. Since May 2019, HK$220 billion of green sustainable bonds have been issued in multiple currencies, making Hong Kong a leader in the green bond market. A roadmap regarding the adoption of International Financial Reporting Standards will be launched in the coming weeks, making Hong Kong one of the first jurisdictions to align local practices with international sustainable reporting requirements. The Monetary Authority released the 'Sustainable Finance Action Plan' at the end of last month to help banks transform toward achieving net-zero emissions. Since May 2019, the Hong Kong government has issued a total of HK$220 billion in sustainable development bonds and green debt.
He continued to mention that the Hong Kong government is committed to innovation and technological advancement in the financial sector, including providing funding programs for the concept verification of green fintech and early-stage funding support for related programs. Fintech can also assist enterprises in utilizing artificial intelligence (AI) and blockchain technology to improve efficiency and maintain competitive advantages.
He further pointed out that SMEs account for over 98% of businesses in Hong Kong and employ about 45% of the private sector workforce, emphasizing the importance of supporting the digital transformation of SMEs. The Hong Kong government has launched nine measures to support SMEs this year, and the Hong Kong Monetary Authority and the banking industry have introduced a loan coordination mechanism for SMEs.
The Secretary for Financial Services and the Treasury, Christopher Hui, mentioned earlier this month that a comprehensive roadmap for the adoption of ISSB standards is expected to be launched within this year. The roadmap will cover three additional key areas: sustainable certification, data and technology, and capacity building.
