I am pleased to welcome you to the Belt and Road Summit. The annual Summit brings together government, business and financial leaders across the world to explore opportunities for regional and international cooperation.

This year marks both the seventh anniversary of the Summit and the 25th anniversary of Hong Kong’s return to the motherland. In his important speech on 1 July this year, President Xi Jinping stressed that “One Country, Two Systems” must be adhered to in the long run, and the Central Government fully supports Hong Kong in maintaining its distinctive status and advantages, including improving our presence as an international financial, shipping and trading centre. That can only reinforce Hong Kong’s role as bridge between our country and the rest of the world, and as a key link for the Belt and Road.

Our mature and efficient financial market as well as prowess of professional services have made Hong Kong a premier financing centre for Belt and Road infrastructure projects where we provide avenues for financing greenfield projects. Meanwhile, the Hong Kong Mortgage Corporation is working on a pilot scheme on infrastructure-financing securitisation. It plans to offer securitised infrastructure products worth some US$450 million to institutional investors early next year, thus facilitating the flow of capital to high quality brownfield projects, and releasing the proceeds for reinvestment in new projects.

Major economies are transitioning to the green economy in coping with climate change. Belt and Road countries see a keen demand for green and sustainable finance. Hong Kong’s development in this respect is thriving and can help them respond to that demand. The amount of green and sustainable debt issued in Hong Kong in 2021, for example, reached a record high of US$57 billion. We are also taking steps to develop Hong Kong as a regional carbon-trading centre, and will continue to subsidise institutions in respect of their green and sustainable financing and certification expenses. These initiatives will help support the development of green projects around the world.

In recent years, the renminbi is increasingly used in Belt and Road countries for cross-boundary trade settlement. Hong Kong is the global hub for the offshore renminbi business, handling nearly 75% of global offshore renminbi payments, while maintaining the largest offshore renminbi liquidity pool in the world. Rest assured, we are working to expand our renminbi-denominated investment channels and tools. That can only provide stronger treasury management support for the Belt and Road.

Moreover, to enhance Hong Kong’s role as a risk management centre, the Hong Kong Special Administrative Region Government made a number of legislative amendments in 2021, covering tax concessions for selected insurance business, such as marine and specialty insurance; as well expansion in the scope of insurable risks of captive insurers set up in Hong Kong. The Hong Kong Specialty Risks Consortium established by the Insurance Authority of Hong Kong also commenced operation in 2021 to facilitate the matching of demand and supply in specialty risk areas. All these are conducive to meeting the demand for risk management services by Belt and Road projects.

The Regional Comprehensive Economic Partnership (RCEP), which came into force at the beginning of the year, complements the Belt and Road in furthering regional economic development and integration. The Hong Kong Special Administrative Region Government is seeking early accession to RCEP, with a view to making the best use of our “One Country, Two Systems” advantages, creating mutually beneficial connections and opportunities for our country and the world at large.

I wish the Summit every success and all participants a rewarding experience.