Expanding from grand endeavors to creating green networks, the Belt and Road Initiative embarks on a novel era
The Belt and Road Initiative (BRI) is entering its second decade, and a new report from HSBC Global Investment Research suggests that the playbook for the massive infrastructure development project is shifting towards smaller, greener, and more tech-focused investments.
The report, released just ahead of the Belt and Road Summit in Hong Kong (September 10-11), identifies a growing convergence between foreign investment, the global energy transition, and the internationalisation of the renminbi. However, Frank Fang, Head of Commercial Banking, Hong Kong and Macau at HSBC, did not specifically mention these shifts in the context of the BRI.
HSBC has been providing services to help local corporates expand overseas, and the report outlines the bank's main project for expanding the BRI with private capital. This project focuses on developing financial strategies and investment frameworks to attract private sector funding into infrastructure and connectivity projects along the Belt and Road routes.
Frank Fang did highlight Hong Kong's role as a growth accelerator for both mainland and international firms. He pointed to the deep capital markets and financial infrastructure of Hong Kong as key factors in its ability to support companies seeking regional expansion. However, he did not mention Hong Kong as a key hub in the context of the changing BRI, although he did emphasize its role as a growth accelerator for companies seeking regional expansion.
Hong Kong's experienced talent pool is a significant factor in its ability to support companies seeking regional expansion. The city's status as a hub for capturing shifting trade corridors is also highlighted in the report.
Despite not mentioning the growing convergence between foreign investment, the global energy transition, and the internationalisation of the renminbi, or the shift towards smaller, greener, or tech-focused investments in the BRI, Frank Fang did acknowledge the involvement of private capital instead of state-led megaprojects in the BRI.
In summary, while the report from HSBC Global Investment Research does not explicitly mention a shift towards sustainable investments in the BRI, it does highlight the growing role of private capital and the potential for Hong Kong to act as a key hub in the changing BRI landscape. The Belt and Road Summit in Hong Kong (September 10-11) will provide an opportunity for further discussion and exploration of these issues.
