the exchange fund. ( ii ) while we have been weaving esg factors into our investment process over the past few years, the hkma will now adopt a guiding principle that priority will be given to green and esg investments if the long term return is comparable to other investments on a risk - adjusted basis. ( iii ) going forward, we will be more proactive in embracing esg in exchange fund investment in both public markets and private assets, for example, by : ( a ) growing the green bond portfolio by direct investment or investing in green bond funds ; ( b ) on the public equities side, we aim to create esg mandates by adopting esg equities index as benchmark for passive portfolio, or by engaging active equities managers who use an esg filter in equity selection ; and ( c ) in the private markets, we will include green accreditation as a predominant factor for investment in real estate, and will also conduct esg evaluation as a mandatory part of due diligence of all private markets investments, especially in infrastructure area. 17. the third measure is to strengthen our capacity building efforts by launching the centre for green finance ( cgf ) under the hkma infrastructure financing facilitation office ( iffo ). ( i ) the purpose of the centre is to ensure that our financial institutions are equipped with the knowledge, skills, tools and other resources in green finance, particularly with the launch of the green and sustainable banking initiative. the cgf will serve as a one - stop shop in capacity building for the financial industry, especially banks, in the coming months. we are already in discussions with international organisations such as the international finance corporation on how to leverage their expertise on this. 18. apart from these three initiatives, the hkma helped to issue hong kong government ’ s inaugural us $ 1 billion, 5 - year green bond under the government green bond programme earlier in may. ( i ) we have seen strong demand for this issuance, attracting orders exceeding us $ 4 billion, allowing the green bond to be priced at a tight spread against the us treasury at issuance. the issuance has helped to set an important new benchmark for potential green bond issuers in hong kong and the region. ( ii ) the deal has attracted interests from a diverse group of conventional and green investors. orders were received from over 100 global institutional investors, and 50 % of the green bond was distributed to asia, 27 % to europe and 23 % to

, and i respect that. but, whichever organisation takes on the formal role, hkab will almost certainly have a part to play in shaping policies and practices in this area. the future role of hkab quite apart from consumer protection, the larger question remains of what the industry, the hkma, and not least the community might expect from hkab in the future, after one of its principal responsibilities – the weekly setting of interest rates – has been taken away. it is this subject that i should like briefly to address in the final section of this speech. it is, perhaps, something of an irony that, at a time when hkab ’ s formal powers are diminishing, its public profile has never been higher. we know from the television and the press that it has become almost a weekly tradition for your chairman to appear down in statue square to receive petitions, banners, and all kinds of symbolic objects from concern groups. i think this says something about the reputation that hkab has established as the industry body. it also says something about public expectations of its role. it is therefore timely, during a period of deregulation and rising expectations, that there should be a reconsideration of how hkab ’ s role could be developed. i should stress that the decision on how that role should be developed is ultimately a matter for hkab itself. hkab has, in fact, already commissioned a consultant to examine this subject, and you have now published the report for consultation with member banks. the hkma has read the report, and from our point of view the recommendations in it are sensible and realistic. taking into account the report, and how we see the banking sector developing, we see scope for developing hkab ’ s role in four broad areas. first, and perhaps most important, the report recommends that hkab could take further its function as the voice of the industry. we support this recommendation. hkab already fulfils this role to a great extent, particularly in its submissions on policy proposals and in its regular meetings with us on a variety of operational issues. but this role could be deepened, particularly in developing a more unified position on major policy issues, and in achieving a position that broadly reflects the views of the whole of the banking industry. i would even suggest that there is scope for hkab to become not just the spokesperson for the banking industry, but also a lobbyist for the industry. this is not an easy task, because the banking industry in