another area that is impossible to ignore when discussing financial opportunities and developments is green and sustainable finance. asia has the largest need for climate finance among all geographical regions. according to a report by the global financial markets association and boston consulting group in december 2020, it is estimated that the region will require usd66 trillion of climate investment in the coming three decades1. this is equivalent to over half of the global investment needed if global temperature increases are to be kept under 1. 5 degree celsius. 14. china alone will need over rmb100 trillion ( or usd15 trillion equivalent ) in green investment over the next three decades to achieve its declared goal of achieving carbon neutrality by 20602. hong kong is well positioned to help achieve this important national objective as we have long been the gateway between mainland china and the rest of the world. last year, under the hong kong government green bond programme, we helped the government issue its inaugural green bond denominated in rmb to an overwhelmingly positive market response. the government plans to continue issuing green bonds regularly to build benchmark yield curves for the market to attract more issuers, including those from the mainland, to use hong kong ’ s platform to meet their green financing needs. 15. the hkma has been actively promoting green and sustainable finance, joining local and international regulators to ensure that the financial sector plays its part in contributing to global net - zero goals. we are working to strengthen the resilience of the banking system against climate risks and accelerate banks ’ efforts to support the transition to a low - carbon economy. 16. we are also enhancing the ecosystem in other ways, including a particular focus on filling the capacity gaps in knowledge, talent and data. closing 17. in closing, let me just note hong kong ’ s two biggest strengths as an international financial centre – its resilience and adaptability. unfortunately, the international environment is rarely stable : we have lived through many financial and other crises, we have just come through a pandemic and we are all aware of the geopolitical challenges across the world. we will overcome current and future challenges as we have done so in the past – by constantly evolving to meet the needs of the nation and of the world. in recent years, hong kong ’ s role has further evolved to include providing a pathway for the ever - expanding international use of the rmb. that will remain our key task for the foreseeable future. our unique and irreplaceable role in

: the first is by enhancing offshore rmb liquidity. as mentioned earlier, the hkma ’ s currency swap agreement with the people ’ s bank of china was enhanced in july. apart from the overall increase in the size and removal of the need for renewal of the swap agreement, on the back of this, the hkma enhanced its rmb liquidity facility, and the important changes include : expansion of both intraday and overnight repos from rmb10 billion to rmb20 billion each, providing an additional rmb20 billion in liquidity to the market ; extension of the overnight repo operating hours from 6 pm to 5 am the next day ( when the rmb rtgs system closes ), making operation more flexible and streamlined, especially for those in other time zones ; and reduction of repo rates of the overnight repo, with the spread over cnh hibor lowered from 50 to 25 basis points. we will constantly monitor the need for further enhancements to keep rmb liquidity in hong kong at the optimal level. the second approach is to facilitate the development of more diverse offshore rmb products. the expansion and enhancement of the connect schemes to promote the cross - boundary use of the rmb and facilitate further portfolio flows into and out of the mainland is crucial. southbound trading under bond connect and wealth management connect have created new opportunities for investors and increased the usage of the rmb in capital markets and wealth management. we will consider enhancements to southbound bond connect to enrich hong kong ’ s bond market. and we are discussing incremental enhancements to wealth management connect with mainland authorities, such as improving sales arrangements, expanding product scope, and allowing more financial institutions to participate. we will also focus on developing the offshore rmb derivatives market by introducing risk - management products to meet global investors ’ hedging needs and develop hong kong as a risk - management centre. swap connect and the introduction of mainland government bond futures in hong kong are important steps to allow global investors to conduct hedging for their bond investments in the mainland. we will continue to explore the provision of more diversified riskmanagement tools to drive further allocation into mainland bonds and openingup of the mainland bond market. etf connect will give global investors direct access to the rapidly developing etf markets on both sides, and enrich the product range under stock connect. the inclusion of foreign companies in southbound trading will make our stock exchange even more attractive as a leading fund - raising destination for international companies