Is the ‘Belt and Road Initiative’ a pipe dream or golden goose for Hong Kong investors?

Breaking down why major Hong Kong businesses have had little to do with China’s go-global trade strategy

Reading Time:3 minutes

Experts say Hong Kong could serve as a middleman to China and other countries under the belt and road plan. Photo: Sam Tsang

Published: 2:02pm, 6 May 2017Updated: 2:02pm, 6 May 2017

Shortly after Chinese President Xi Jinping announced the “Belt and Road Initiative” in 2013, Hong Kong Chief Executive Leung Chun-ying was quick to embrace China’s go-global trade plan by positioning the city as a “super connector” linking the mainland to more than 60 countries under the scheme.

Leung said Hong Kong’s sophisticated financial system, renowned professional services, and international exposure gave the city an edge in the trade strategy.

But local business communities are wary of the high geopolitical tensions from aligning with the initiative, despite being keen to capitalise on the opportunity. As such, the scheme has seen few investments from the city.

A graphic depiction of the extent of the belt and road plan at the Asian Financial Forum last year. Photo: Reuters, Bobby Yip

In a week’s time, Hong Kong’s business leaders will join the heads of 28 countries, including Russian President Vladimir Putin, in attending a major summit in Beijing to discuss the latest development of the initiative. Where does Hong Kong stand in all this?

Here are the answers: