A Hong Kong membership in the Asian Infrastructure Investment Bank could strengthen the city’s role as a fundraising center.
Hong Kong is a major financial center for Asia and could play an important role for the Asian Infrastructure Investment Bank,or AIIB if it becomes a new member of the bank.
AIIB’s president, Jin Liqun was invited by former Hong Kong Chief Executive, Tung Chee-hwa to give a speech in Hong Kong
”I think HK as a financial center, will have a very important role to play for AIIB, for instance, AIIB can issue bonds in HK and can also have currency...tradings down in HK,” Jin Liqun said.
Hong Kong has always been a financial hub for China’s inbound and outbound investment. Last year, 68 percent of foreign direct investment in Chinese mainland – worth $126 billion dollars – flowed through Hong Kong.
Overseas investment by Chinese companies in 2014 stood at $123 billion dollars, with 58 percent flowing through Hong Kong.
Hong Kong will take a bigger role in the internationalization of yuan and multi-billion fund raising, IF the city becomes a member of the Asian Infrastructure Investment Bank. But the question many people are asking now is WHEN Hong Kong will be a member?
The answer, possibly later this year.
”We will discuss the procedure for accepting new members in the forthcoming board meetings the end of this month, and if things go well, we could have serious discussions of the new members in June,” Jin Liqun said.
The bank was proposed by Chinese president Xi Jinping, and officially launched this year. Headquartered in Beijing, it has authorized capital of $100 billionand has 57 founding members. The member could expand to 100 soon.(Beijing,please add pictures)
AIIB is a Chinese initiative linked to its One Belt, One Road policythat aims to finance infrastructure projects from India to South East Asia and the Middle East.
President Jin Liqun also has rejected accusations that China intends to create a bank that could undercut the World Bank and Asian Development Bank.
"In this neighborhood, there're two restaurants, do you think I can have a third restaurant serving Chinese food?" Jin Liqun said.
He added developing countries in Asia recalled an average growth of 6.5% in 2015, and contribute more than 40% of the world's total growth. And it’s important for developing countries to have a voice.
