“Hong Kong and the HKEX are able to make our contributions to the country’s carbon neutrality push in financing green tech firms, connecting domestic [companies], overseas firms and funds to participate in low-carbon transition, as well as spurring green tech innovations and sustainable development,” she said.

The three-day Bund Summit, which concludes on Sunday, brings together senior policymakers, financial executives and academics around the world to shed light on the country’s economic status and prospects amid worries about US-China decoupling. The annual event is run by the China Finance 40 Forum, a non-governmental organisation.

Cha’s remarks underscore efforts proposed by Beijing to fully engage with Hong Kong, which plays a major role in offshore yuan trading, settlements and creating a risk management ecosystem, to allocate financial resources and help in the country’s economic growth.

The Hong Kong exchange is already home to a clutch of Chinese new-energy vehicle start-ups and automotive supply-chain powerhouses, including carmakers Nio, Li Auto and Xpeng as well as electric vehicle battery producer China Aviation Lithium Battery.

China’s green financing to soar next 30 years despite rising rates

China, the world’s second-largest economy, is estimated to need more than US$20 trillion in investments over the next 15 years to deliver on its sustainability goals, according to Cha.

Chinese President Xi Jinping in September 2020 pledged at the United Nations General Assembly that the country would reach peak carbon emissions by 2030 and carbon neutrality by 2060.Financing demand for green projects in China, however, is expected to top 300 trillion yuan (US$41 trillion) from 2021 to 2050, as mainland authorities push ahead with those ambitious climate goals, according to a forecast by Beijing-based Institution of Finance and Sustainability in late 2022.

Hong Kong-listed firms not ready for new ESG disclosure rules: Grant Thornton

Meanwhile, Chinese Academy of Social Sciences professor Zhang Xiaojing suggested at the Bund Summit on Saturday that senior Beijing authorities step aside from deliberations about technological innovations in various fields and allow market forces to support tech businesses.

“We must give market forces a full play in pricing financial risks and allocating financial resources,” Zhang said. “Government departments are supposed to relinquish their role in guaranteeing investment safety.”

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