A view of Hong Kong Photo: VCG

The Asian Infrastructure Investment Bank (AIIB) on Monday announced its plan to set up an office in Hong Kong to address its growing business needs. 

The Hong Kong Special Administrative Region (HKSAR) government welcomes the AIIB's plan and it is committed to assisting the AIIB in further promoting the sustainable development of infrastructure in Asia, noted a statement seen on the official website of the HKSAR government on Monday.

The HKSAR's Secretary for Financial Services and the Treasury, Christopher Hui, said that Chief Executive John Lee Ka-chiu announced in his Policy Address this year that we will actively invite the AIIB to set up an office in Hong Kong. We are very glad to hear the positive decision of the AIIB on setting up an office in Hong Kong and will actively meet the AIIB's needs to render support for the establishment of the office. 

"As an AIIB member, Hong Kong, China, is committed to assisting the AIIB in fully leveraging our vibrant capital markets, world-class professional services, and diversified financial products to support the Bank's operations in project financing, bond issuance, and investment and financial management, among others," Hui said.

Hong Kong will continue to capitalize on its unique advantages of connectivity with both the mainland and the world under the "one country, two systems" principle, with a view to making an active contribution to the AIIB's long-term development, Hui added.

According to Hong Kong media RTHK, AIIB President Jin Liqun said in his speech at the Hong Kong FinTech Week on Monday that negotiations regarding the establishment of an AIIB office in Hong Kong have entered the final stage, and he believed that the AIIB logo will soon appear at the International Finance Centre.

Jin noted that there are few places in the world as efficient as Hong Kong, which can perfectly integrate the advantages of an international financial center, regional hub, and international talent pool, while possessing long-term capital, professional talent, transparent rule of law, and more. He believed that Hong Kong has played a stable and constructive role in supporting the AIIB's high-standard governance and business growth, including providing platforms to facilitate broader cooperation and helping incubate and transform innovative ideas, RTHK reported.

Pan Helin, a member of an expert committee under the Ministry of Industry and Information Technology, told the Global Times on Monday that the plan to establish an AIIB office in Hong Kong signifies an acknowledgment by the AIIB of the city's talent base and financial environment. "In the future, Hong Kong's financial services industry will gain greater influence, with more AIIB collaborations expected to be advanced in the city."

The expert added that as Hong Kong's financing environment is improving, the AIIB can get more diverse financing channels through the city to enhance its support capabilities. Moreover, Hong Kong serves as a key connection point between the mainland and the overseas, the AIIB can use Hong Kong as a springboard to enter the Chinese mainland for infrastructure investments, which will further expand the bank's coverage area and optimize its business network, Pan noted.

According to the SAR government website, the AIIB was established in January 2016, and Hong Kong has formally been an AIIB member since June 2017. As a multilateral development bank, the AIIB's mission is to foster sustainable economic development, create wealth, and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors. The AIIB encourages private investment in projects, enterprises, and activities that contribute to economic development in the region.

Global Times