Illustration: Peter C. Espina/GT

When it comes to what role Hong Kong can play in the One Belt, One Road initiative, the public normally believes that as a top global financial center, Hong Kong can be positioned as a "super liaison" that links China and the route countries while being a financing hub.

I wouldn't argue against this proposal, but there are certain obstacles that are in the way. For instance, Hong Kong's development has more closely followed the example of Western nations in recent years, so its strengths in areas such as financial services and legal systems may not be well adapted to countries along the Belt and Road route.

As the central government takes charge of foreign affairs, when it comes to cooperation with route countries there may be limited room for Hong Kong to operate independently, even though sometimes Hong Kong officials may have frequent contact or close friendships with officials of some of the route countries.

With regard to Hong Kong's efforts to become a financing hub for the initiative, we should note that only projects that correspond with five major goals - promotion of policy coordination, facilities' connectivity, unimpeded trade, financial integration and people-to-people bonds - can be recognized as One Belt, One Road projects. And if China's "going out" projects are recognized by the initiative, they can receive policy support and fiscal subsidies from the government, as well as cheap loans from financial institutions such as China's policy banks. So they might not need to raise capital via overseas financing in Hong Kong.

Furthermore, it is a big challenge for Chinese firms to raise capital in Hong Kong and invest in route countries. This is because Hong Kong has established a sophisticated and strict financial mechanism that aims to reduce risks while seeking profits. Considering the political situation in some route countries is unstable, and given that our counterparts in other countries along the route have sometimes reneged on contracts, Hong Kong's financial institutions would face big risks in granting loans for Belt and Road projects. This means that domestic firms may find it hard to raise capital in Hong Kong, where the financial institutions uphold the opinion that "business is business."

While Hong Kong has been striving to play a part in the Belt and Road initiative, there are also some unfavorable factors that deserve attention.

First, based on my field research, certain Hong Kong citizens are not that positive about the Belt and Road initiative. Some of them believe it won't be beneficial, or that it is merely some hype to boost market sentiment and that its influence will gradually fade away.

Second, a number of small and medium-sized enterprises in Hong Kong tend to believe that as they are involved in light industry or the services sector, it's hard to involve themselves in financial or infrastructure projects related to the Belt and Road initiative.

Third, Hong Kong's young people and college students, who are in urgent need of job opportunities and room for further development, do not fully understand what jobs the initiative could offer.

And fourth, Hong Kong lacks relevant professionals and research teams that specialize in the Belt and Road initiative.

Given these problems, if Hong Kong wants to play a part in the initiative, it should further enhance its role as a financing center and a "super liaison" that bridges China and countries along the route and make greater efforts to serve the Belt and Road projects. More importantly, Hong Kong should no longer just sit around and wait for policy support from the central government, but take the initiative to create new ways to serve and benefit from the Belt and Road initiative. 

Hong Kong should grasp new opportunities for regional economic and financial cooperation by striving to establish a regional cross-border data and information center in partnership with the mainland's greater Pearl River Delta region, and bring out its potential in building a platform for financial cooperation in Asia and along the route of the initiative. The central government could also consider making Hong Kong the offshore center of communication for promoting the One Belt, One Road initiative. And Hong Kong should consider attracting people who have expertise in the initiative to work in the city.

By doing this, Hong Kong can establish a solid status and play its part in the initiative, which would not only allow the region to be of assistance in implementation of the initiative, but could also create new sources of economic growth for Hong Kong.

The author is chief economist with Guangzhou-based China iValley Research Institute. bizopinion@globaltimes.com.cn