ADVANTAGES THAT HK HAS
Prior to becoming financial secretary of the HKSAR government, Tsang had held multiple positions of industry, trade and commercial affairs for governments in Hong Kong. He said Hong Kong has several unique advantages in promoting"One Belt, One Road" strategy.
In transport and logistics, Hong Kong is one of the world's shipping center and aviation hinge. "Especially in air transport, Hong Kong has even more advantage. So far the air freight volume accounts for only 2 percent of the total volume of freight via Hong Kong but air freight value accounts for more than one-thirds of Hong Kong's total export value. We can do better."
Even in land transport, Tsang believed that Hong Kong also has much potential."When the construction of the Hong Kong-Zhuhai- Macao Bridge is completed, the land transport distance between Hong Kong's Kwai Chung container port and Vietnam's capital Hanoi will be much shorter."
In finance, Tsang said as one of the three international financial centers around the world, Hong Kong has the largest pool of offshore Renminbi fund and the first-class services of assets management, which could be developed into a major fund-raising and
financing platform for the"One Belt, One Road"strategy.
In addition, Tsang said Hong Kong has offered Sukuk, Islamic equivalent of bonds, under the SAR government's Bond Program in recent two years. The two Sukuks were both assigned credit ratings of AAA by Standard and Poor's. "The two Sukuks were very successful and acquired multiple rates of over-subscription,"Tsang said. "Many countries along the' One Belt, One Road'are Islamic countries. They might prefer Sukuk rather than ordinary debts in financing methods."
WHAT ROLES HK MAY PLAY
Tsang and other SAR government officials have just paid a visit to Beijing to attend a special meeting of the Asian Infrastructure and Investment Bank (AIIB) and met central government officials on various issues including what roles Hong Kong could play under the "One Belt, One Road"strategy in the future.
Tsang said he made a proposal in meeting Jin Liqun, secretary- general of the AIIB's preparatory office, that the AIIB could establish an office in Hong Kong as disputes handling center.
Tsang revealed that the AIIB has also showed interest in using Hong Kong as a debt-issuing platform."So besides acquiring financing resources from its members, debt-issuing will be the main financial source for the AIIB."
The official noted that Hong Kong has many advantages in debt- issuing. Firstly, Hong Kong is a place with very easy access to global investors. Secondly, Hong Kong has experience in offering Sukuk. Thirdly and the most important, Hong Kong has a very mature
financial market with lower costs for debt-issuing.
The financial secretary said that to help Hong Kong's companies promote their businesses, he will lead a delegation to visit countries along the"One Belt, One Road."
"We will start from Eastern European countries like Hungary and Poland in two or three months, and plan visits to countries in Central Asia and also countries along the maritime silk road next year."
