Hong Kong poised for role as Islamic finance centre, financial secretary says
News Summary
Hong Kong is on track to develop as a leading Islamic finance centre in North Asia, aiming to facilitate the flow of Middle Eastern capital into the Greater Bay Area. Financial institutions like Standard Chartered Bank report a growing number of inquiries regarding the issuance of sukuk bonds in Hong Kong. Financial Secretary Paul Chan Mo-po highlighted Hong Kong's world-class financial market infrastructure and a robust legal framework supporting the issuance of Sharia-compliant instruments. He noted the government's previous issuance of over US$3 billion in sukuk a decade ago and recent listings of an ETF tracking major Saudi Arabian companies and another tracking sukuk government bonds. Later this month, Chan will lead a delegation of Hong Kong and mainland companies in sectors such as AI, biotech, fintech, and green energy to Saudi Arabia to deepen collaboration.
Background
Hong Kong, as a premier global financial hub, has long been recognized for its deep capital markets, robust regulatory framework, and international business environment. In recent years, in response to shifts in the global economic landscape and the pursuit of new growth drivers, Hong Kong has actively diversified its financial services, including focusing on Islamic finance. This initiative aims not only to attract significant wealth from the Middle East but also to introduce more diversified investment capital into mainland China, particularly the Greater Bay Area. Hong Kong has made prior explorations in Islamic finance, including government sukuk issuances and the progressive enhancement of related legal and market infrastructure. This renewed push comes amidst growing global interest in sustainable and ethical investments, with Islamic finance offering a distinct set of principles for investors.
In-Depth AI Insights
What are the true strategic drivers behind Hong Kong's push to become an Islamic finance centre? - Beyond the apparent goal of attracting Middle Eastern capital, Hong Kong's deeper strategic objective is to solidify its role as China's