The Financial Services and Treasury Bureau of the Hong Kong Special Administrative Region Government said today that it welcomes the issuance of the first “side-trailer” insurance-linked securities by China People's Property Insurance Co., Ltd. in Hong Kong, with a total issuance of US$12 million, equivalent to approximately HK$94 million, to cover offshore wind power insurance business in mainland China through proportional reinsurance. The Secretary for Treasury, Mr Hui Ching-yu, said that the country's “15th Five-Year Plan” prioritizes improving the disaster risk protection system and risk sharing mechanism. The first five-year plan of the Hong Kong Special Administrative Region therefore proposes making full use of the comparative advantages of international insurance, reinsurance and capital markets to promote the collaborative development of traditional insurance and non-traditional risk management tools. This move can unleash the superposition effects of multi-level risk transfer and sharing mechanisms such as insurance-linked securities, thereby strengthening Hong Kong's strategic function as a regional and even global catastrophe and special risk management hub. This release marks significant progress in risk transfer and alternative capital use in Hong Kong's insurance industry and capital market with state support. At the same time, it further enhances the market's ability to cope with major disasters and other special risks, and strengthens Hong Kong's position as an international risk management center.

The Financial Services and Treasury Bureau of the Hong Kong Special Administrative Region Government said today that it welcomes the issuance of the first “side-trailer” insurance-linked securities by China People's Property Insurance Co., Ltd. in Hong Kong, with a total issuance of US$12 million, equivalent to approximately HK$94 million, to cover offshore wind power insurance business in mainland China through proportional reinsurance. The Secretary for Treasury, Mr Hui Ching-yu, said that the country's “15th Five-Year Plan” prioritizes improving the disaster risk protection system and risk sharing mechanism. The first five-year plan of the Hong Kong Special Administrative Region therefore proposes making full use of the comparative advantages of international insurance, reinsurance and capital markets to promote the collaborative development of traditional insurance and non-traditional risk management tools. This move can leverage the combined effects of multi-level risk transfer and sharing mechanisms such as insurance-linked securities, thereby consolidating Hong Kong's strategic function as a regional and even global catastrophe and special risk management hub. This release marks significant progress in risk transfer and alternative capital use in Hong Kong's insurance industry and capital market with state support. At the same time, it further enhances the market's ability to cope with major disasters and other special risks, and strengthens Hong Kong's position as an international risk management center.