The “Northern Metropolitan Area Financial Advisory Working Group” held a second meeting to study diversified financing models to help the development of Beidu

The Zhitong Finance App learned that on August 26, the “Northern Metropolitan Area Financial Advisory Working Group” (Working Group) jointly established by the Hong Kong Monetary Authority and the Hong Kong Association of Banks held a second meeting to discuss how the banking industry can promote the implementation of projects in the Northern Metropolitan Area (Beidu) through diversified financing models.

At this meeting, the Financial Services and the Treasury Bureau shared the diverse development models adopted by the Government to accelerate the development of Beidu, including setting up park companies to participate in industrial construction and operation, while guiding market forces to accelerate development projects through public-private partnerships. The authorities also said that the approval of the Finance Committee of the Legislative Council to allocate more than HK$180 billion for public works projects related to Beidu shows the government's firm support for the development of Beidu.

Furthermore, Hung Shui Kiu Industrial Park Co., Ltd. introduced the development direction, strategy and model of its industrial park, as well as opportunities for collaboration with the banking industry, so that banks can prepare early on financing and other supporting financial services to match the development of the industrial park project.

Considering that many Beidu projects will adopt multiple public-private cooperation models, the working group has set up a “public-private cooperative financing task force” (task group) under its administration to promote professional exchanges in the banking industry in related fields. The task force shared examples of public-private cooperative financing from the mainland and overseas during the conference, covering projects in the fields of “area development”, education, transportation, and infrastructure.

The task force will draw on relevant experience, study the financability of the Beidu project through different development models and risk mitigation measures, and explore supporting arrangements to promote financing of public-private cooperative projects, including formulating financing models for banks to refer to, and expedite the provision of targeted financing solutions for projects related to Beidu.

Participants included representatives from the HKMA, the Banking Association, the Development Bureau, the Financial Services and Treasury Bureau, the Innovation, Technology and Industry Bureau, Hung Shui Kiu Industrial Park Limited, and 23 working groups participating banks.