Hong Kong Financial Working Group Meets on North Metropolis Financing; Approved Works Funding Exceeds HK$180

The North Metropolis Financial Advisory Working Group held its second meeting today. The group was jointly established by the Hong Kong Monetary Authority and the Hong Kong Association of Banks. The meeting discussed how the banking industry can promote the implementation of North Metropolis projects through diversified financing models. At the meeting, the Financial Services and the Treasury Bureau introduced the government's diversified development model for accelerating the development of the North Metropolis, including establishing park companies to participate in industrial construction and operation, while guiding market forces to accelerate project progress through public-private partnerships. The authorities said that the Legislative Council's Finance Committee has approved funding for public works projects related to the North Metropolis, exceeding HK$180 billion.

Given that many North Metropolis projects will adopt diversified public-private partnership models, the working group has established a "Public-Private Partnership Financing Sub-group" under its purview to promote professional exchanges in the banking sector in this area. During the meeting, the sub-group shared public-private partnership financing cases from the mainland and overseas, covering areas such as district development, education, transport, and infrastructure. The sub-group will draw on these experiences to study how to enhance the bankability of North Metropolis projects through different development models and risk mitigation measures, and to explore supporting arrangements to facilitate financing for public-private partnership projects, including developing financing templates for banks' reference, so as to accelerate the provision of targeted financing solutions for North Metropolis-related projects.