Hong Kong's sustainable debt market expands by 15%, gearing up for the arrival of Green Week in the city

Hong Kong's Sustainable Debt Market Shows Solid Growth

The Hong Kong Monetary Authority (HKMA) has reported a robust growth in the city's sustainable debt market, with a 15% increase in the first half of the year. This growth, estimated at US$34.3 billion, marks a significant rise from the same period last year.

Kenneth Hui, the executive director (external) of the HKMA, made the statements during a recent announcement. He expressed hope that this momentum will extend to the second half of the year, further bolstering the city's commitment to climate mitigation and adaptation.

The HKMA also noted that actual funding for climate mitigation and adaptation in Asia falls short by about US$800 billion. Emerging and developing Asia requires at least US$1.1 trillion in annual investment for climate mitigation and adaptation, according to the HKMA.

Despite the positive trend in the sustainable debt market, a search for relevant information about an organization announcing a continuation of positive development in the market in the second half of the year did not yield any results.

The city of Hong Kong is preparing to host the second annual Green Week event, a testament to its continued focus on sustainability. The event, expected to take place later this year, aims to promote green initiatives and foster dialogue on environmental issues.

The positive trend in the sustainable debt market follows a significant rise in green debt instruments last year. Kenneth Hui noted strong demand from international investors, particularly in Europe and the US, as a driving factor behind the growth.

A survey by Standard Chartered found that 84% of high-net-worth individuals in Hong Kong are willing to invest in high-emission companies to lower their carbon footprint and align with net-zero targets. This willingness bodes well for the future of the sustainable debt market in Hong Kong.

As the city continues to invest in climate mitigation and adaptation, the sustainable debt market is expected to play a crucial role in financing these initiatives. The second half of the year promises to be an exciting time for the market, as it continues to grow and attract international investment.