THE Hong Kong Stock Exchanges and Clearing (HKEX) will continue to raise its standards for disclosure of climate-related informationwhile facilitating access to capital for quality green technology companies as part of efforts to strengthen China’s carbon neutrality goalaccording to the president Laura Cha Shih May-lung.
“Our goal is to provide (global) investors and the entire financial market with easy access to comprehensive (climate-related) information,” Cha said on Saturday in his speech ahead of the 2023 Bund summit in Berlin. Shanghai. “We will ensure that our (information disclosure) rules comply with the highest international standards.”
She added that the exchange is also pushing for more innovative ways to expand financing channels for green projects. technology companies, without elaborating on this plan.
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“Hong Kong and the HKEX are able to contribute to the country’s carbon neutrality drive by financing green technology companies, connecting domestic and foreign companies and funds to participate in the transition to a low-carbon economy. carbon emissions, as well as stimulating innovations and innovations in green technologies. sustainable development,” she said.
THE Three-day Bund Summit, which ends Sunday, brings together top policymakers, financial leaders and academics from around the world to shed light on the country’s economic situation and outlook, amid concerns about decoupling between the United States and China. The annual event is organized by the China Finance 40 Forum, a non-governmental organization.
Cha’s remarks highlight Beijing’s proposed efforts to fully engage with Hong Kong, which plays a major role in offshore yuan trading, regulations and the creation of a risk management ecosystem, to allocate financial resources and contribute to the economic growth of the country.
The Hong Kong stock exchange is already home to a cluster of Chinese new energy vehicle start-ups and automotive supply chain powerhouses, including automakers. Nio, Li Auto And Xpeng as well as producer of batteries for electric vehicles Aviation lithium battery in China.
Cha, who served as vice president of China Securities Regulatory Commission between 2001 and 2004, said the HKEX became the first initial public offering destination for the continent’s green technology companies.
China, the world’s second-largest economy, is estimated to need more than $20 trillion in investment over the next 15 years to achieve its sustainable development goals, according to Cha.
Chinese President Xi Jinping in September 2020, promised during the The United Nations The General Assembly declared that the country would reach peak carbon emissions by 2030 and carbon neutrality by 2060.
Request for financing for green projects in ChinaHowever, the amount is expected to exceed 300 trillion yuan ($41 trillion) between 2021 and 2050 as mainland authorities pursue these ambitious climate goals, according to a forecast from the Institution of Finance and Sustainability, based in Beijing, end of 2022.
The HKEX has proposed to implement new reporting requirements from next year which are aligned with the standards for a global benchmark for disclosures fixed by the International Sustainability Standards Council.
In the new framework of exchange, making environmental, social and corporate governance disclosures will be mandatory, unlike the current “comply or explain” process.
Separately, Zhang Xiaojing, a professor at the Chinese Academy of Social Sciences, suggested at the Bund summit on Saturday that Beijing’s top authorities withdraw from deliberations on technological innovations in various fields and let market forces support technology companies.
“We should give full play to market forces in pricing financial risks and allocating financial resources,” Zhang said. “Government services are expected to abandon their role in guaranteeing the security of investments.”
This article was originally published in the South China Morning Post (SCMP), the most authoritative voice in reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP application or visit the SCMP Facebook And Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.
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