HK pushes for ILS via regulatory regime, grants HK$100m for financial industry

The finance secretary also promises to transform into a global hub for supply chain management, thus ensuring coverage by an export credit insurance corporation.

Hong Kong is pegged as a global risk management centre and offers diverse insurance services. Initiatives are underway to attract captive insurers and promote insurance-linked securities (ILS), coined Finance Secretary Paul Chan Mo-po in his 2024-25 Budget speech.

“To date, we have facilitated the issuance of four catastrophe bonds in Hong Kong, one of which marked the inaugural listing of its type of ILS. We will continue to attract more issuing institutes to Hong Kong while nurturing talent and propelling the industry's development,” the secretary said.

To bolster the financial services sector, the government also allocated HK$100m in sustainable development, fintech, and risk management. Efforts aim to maintain Hong Kong's competitiveness in the global financial landscape.

Hong Kong also promises to transform into a global hub for supply chain management, capitalising on the trend of Mainland manufacturers expanding abroad. 

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Leveraging its status as a leading financial and commercial centre, Hong Kong can provide extensive professional support services tailored to meet the diverse needs of enterprises venturing into international markets. These services are crucial for businesses looking to go global, especially those with limited overseas experience.

In terms of trade financing, mainland enterprises operating in Hong Kong can leverage services offered by the Hong Kong Export Credit Insurance Corporation for trade financing. 

These services include export credit insurance, buyer surveys, and market updates to support business operations.

“The Commercial Data Interchange launched earlier by the HKMA and its Project mBridge allow enterprises to apply trade financing and cross-border settlement services at a lower cost and with higher efficiency.” said Mo-po.