SFST meets Asian Development Bank President in Korea (with photos)
2.5.2023

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, started his visit to Incheon, Korea, today (May 2). Mr Hui met with the President of the Asian Development Bank (ADB), Mr Masatsugu Asakawa. He told Mr Asakawa that with the advantages of accessing Mainland and international markets, and Hong Kong's robust regulatory framework, the city always welcomes the ADB to make use of Hong Kong's financial markets and services to reach out to target markets for fundraising and investments. Mr Hui also provided Mr Asakawa with information on Hong Kong's dedicated regulatory regime for insurance-linked securities (ILS) and a pilot grant scheme in place since 2021 to sponsor the issuance of ILS. In March this year, the World Bank (International Bank for Reconstruction and Development) issued an ILS in the form of a catastrophe bond in Hong Kong with a size of US$350 million, offering protection against losses related to earthquake risks in Chile. Given that the frequency and intensity of natural disasters are on the rise, Mr Hui noted that such a type of debt instrument is especially important for small island developing states, which are most vulnerable to the rising trend of extreme climate change. He also told Mr Asakawa that Hong Kong will continue to offer strong support as a risk management centre to help bolster the safety and resilience of the region. Earlier today, Mr Hui met with ADB Vice President Ms Roberta Casali and its Treasurer, Mr Pierre Van Peteghem, as well as the Executive Director, Ms Rachel Thompson, who represents Hong Kong's constituency on the ADB Board of Directors, respectively. In the meeting with Ms Thompson, Mr Hui said he was pleased to note that the ADB raised over US$728 million through bond issuances in Hong Kong in 2022. He added that the depth and breadth of Hong Kong's financial market enables the ADB to easily tap into private sector funds, and he hoped that the ADB will continue to make the best use of Hong Kong's broad availability of financiers for fund-raising activities. At the meeting with the Governor of the Bank of Korea, Mr Rhee Chang-yong, Mr Hui said that although 2022 was a difficult year for global financial markets with rising inflation and interest rates, the Hong Kong financial market is well supported by the resilience and stability of the city's financial system, adding that the recent turmoil in the international banking sector has brought minimal impact to Hong Kong's banking system and monetary stability. Mr Hui also shared with Mr Rhee the Policy Statement on Development of Virtual Assets in Hong Kong issued last October. The Policy Statement sets out the vision and policy direction to establish a facilitating environment with necessary guardrails to mitigate actual and potential risks put in place in accordance with international standards, so as to promote the sustainable and responsible development of the virtual assets sector in Hong Kong. Speaking at the Constituency Meeting at the ADB Annual Meeting, Mr Hui shared his views on Hong Kong's developments in green finance and decarbonisation. He said that as an international financial centre, Hong Kong has developed into a leading regional hub for green and sustainable finance, and the city can contribute to the ADB's efforts in catalysing the deployment of financial resources and closing infrastructure financing gaps in the region. He also talked about Hong Kong's efforts in accelerating its development into an international centre for green technology and finance, including building a green technology ecosystem, green finance applications and innovation, as well as green certification and alignment with international standards. In the coming two days, Mr Hui will meet with ADB senior personnel, have meetings with the top management of the financial supervisory authority and an influential business association of Korea. He will also speak at the Governors' Business Session of the 56th Annual Meeting of the Board of Governors of the ADB.