Hong Kong is in prime position to benefit from China’s one belt, one road economic strategy
As a major connector in the region and globally, the city can capitalise on the opportunities presented by the Silk Road Initiative
With its bold vision and extensive geographical reach, China’s one belt, one road initiative has the scope to transform patterns of trade, investment and thinking over the coming decades.
So far, all the talk suggests Hong Kong is in prime position to play a full part in whatever transpires and will be able to benefit accordingly.
However, it is equally true that any industry, multinational, consultancy, entrepreneur or service provider with hopes of capitalising on the opportunities can’t simply sit and wait.
Contracts will not just flow their way. Hong Kong’s banks and businesses will have to prove they are up to the challenge and be ready to fight for every dollar.
“Many Hong Kong contractors are ranked very high on a global scale and have the qualities and resources to pursue infrastructure opportunities along the belt and road,” says Agnes Chan, Hong Kong and Macau managing partner for EY. “As a ‘superconnector’, Hong Kong is also well-placed to be a platform for financing. For example, the sector’s experience can be utilised to raise funds for the Asian Infrastructure Investment Bank (AIIB) via bond offerings, developing yuan products, or providing project financing for individual companies. This will help boost Hong Kong’s international status as a fund-raising centre and an offshore hub for trading renminbi.”
Having long acted as a bridgehead for mainland China to the rest of the world, the essential task now is to redirect as necessary, deploying existing skills and professional expertise in markets which remain largely untouched or untapped.