Hong Kong’s ambition to be recognised as an international centre for green finance and technology has received a ringing endorsement.
A new research report looking at sustainability goals for companies based in Mainland China has validated Hong Kong as their primary source for related professional services.
“This vote of confidence confirms we are on the right trajectory to work with businesses throughout the Guangdong-Hong Kong-Macao Greater Bay Area, within China as a whole and along the Belt and Road countries and economies,” said Irina Fan, Director of HKTDC Research.
The new report, called Seizing Opportunities in China’s Sustainable Investment, was based on a survey of 283 companies as well as in-depth interviews with key industry representatives.
The report was jointly published by the Hong Kong Trade Development Council (HKTDC) and Association of Chartered Certified Accountants (ACCA).
The research aimed to evaluate the progress made by businesses in Mainland China, as they align themselves with the Central Government's environmental priorities.
Many companies in the survey also highlighted additional benefits from more sustainable business practices, including enhanced access to green finance.
Businesses also face numerous challenges on their sustainability journey however, especially cost pressures, which were cited by 82% of companies.
Most surveyed companies expect little to no ROI in the short term after investing in more sustainable business practices.
Some respondents were also uncertain on their best way to access green financing, despite widespread interest in these funding options.
Nonetheless, almost all the surveyed companies were committed to green transformation.
“Despite the cost pressures highlighted, a major proportion of corporations is committed to investing in sustainability practices as a way to generate long-term value,” noted Wing Chu, Principal Economist of the HKTDC.
“Interestingly, only a smaller fraction currently perceives the lack of knowledge and talent as challenges,” Mr Chu added.
Awareness of green financing options remains relatively low in China, with some 47-56% of respondents indicating a lack of familiarity with many of the available options.
Some 71%, however, maintained that they were willing to make wider use of green financing channels, including green loans and green bonds, while reducing their reliance on traditional options.
“As businesses increasingly prioritise sustainable practices, understanding the local context and utilising green funding and technology has become crucial,” said Sam Chen, Regional Lead of Policy & Insights for ACCA China.
Respondents and interviewees for this research report were drawn from ACCA’s member community in China, which comprises finance professionals across a variety of key sectors.
The full report can be downloaded here.
To further capture green opportunities, The Belt and Road Summit, which will be held at the Hong Kong Convention and Exhibition Centre on 11-12 September, will include thematic breakout sessions on green development, infrastructure and financing.
