Asian Infrastructure Funding Financial institution confirms plan for Hong Kong workplace subsequent 12 months

The Beijing-headquartered Asian Infrastructure Funding Financial institution (AIIB) has confirmed that it’ll open a hub workplace in Hong Kong – a transfer that may improve its offshore financing capabilities and the town’s position as a worldwide monetary centre.

Preparatory work is within the pipeline and progressing effectively, the Submit has discovered from the financial institution. A proper announcement is predicted to be made by AIIB President Jin Liqun, who’s scheduled to handle Hong Kong FinTech Week on Monday.

The AIIB’s second workplace exterior mainland China – the primary was launched in Abu Dhabi two years in the past – is predicted to develop into operational subsequent 12 months.

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“I’m happy to announce that our discussions with the Hong Kong authority on establishing a hub is within the closing stage… This Hub has the twin perform of personal sector mobilization and fund-raising from the capital market,” Jin stated.

The hub workplace will function an interface for AIIB’s funding and treasury operations, together with collaborating with native companions resembling banks and funds to originate and ship infrastructure tasks that profit its 110 members.

The workplace would additionally leverage the depth and liquidity of Hong Kong’s capital markets to help its funding and financing actions, the financial institution stated.

The growth comes as Jin’s 10-year tenure because the AIIB’s president attracts to a detailed. Beneath his management, the financial institution has develop into one of many world’s largest improvement finance establishments, with US$64.6 billion of financing authorised for 338 tasks.

Jin, 76, will likely be succeeded by the 62-year-old Zou Jiayi in January. Like her predecessor, Zou is a former Chinese language vice-minister of finance.

Former vice-minister of finance Zou Jiayi will succeed Jin Liqun as Asian Infrastructure Funding Financial institution president in January. Picture: Handout alt=Former vice-minister of finance Zou Jiayi will succeed Jin Liqun as Asian Infrastructure Funding Financial institution president in January. Picture: Handout>

Hong Kong, which holds a membership stake of 0.7837 per cent within the multilateral improvement financial institution, has more and more develop into one in every of its key fundraising areas.

The AIIB launched its first HK dollar-denominated public bond in February, elevating HK$4 billion with an annual coupon of three.847 per cent.

In the course of the financial institution’s annual assembly in Beijing in late June, Hong Kong Monetary Secretary Paul Chan Mo-po expressed a willingness to reinforce collaboration with the financial institution and likewise witnessed the signing of a strategic partnership settlement between the Hong Kong Financial Authority and the AIIB.

Chan advised the Submit two weeks in the past that Hong Kong would use tax incentives to draw worldwide expertise and “tailor-make” particular packages for multilateral monetary organisations.

“We wish to promote Hong Kong as a regional headquarters hub, [and] worldwide headquarters hub,” he stated in an interview in Washington on October 17.

“For worldwide organisations – you talked about AIIB or the like – we are able to negotiate a selected incentive package deal for them to think about of their transferring to Hong Kong, together with, for instance, rental subsidy help.”

Mainland China is the AIIB’s largest particular person shareholder, with a stake of about 30.5 per cent.

Though the US and Japan usually are not members, the AIIB conducts common financing actions within the two markets, and 83 per cent of its lending is denominated in US {dollars}.

This text initially appeared within the South China Morning Submit (SCMP), essentially the most authoritative voice reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP app or go to the SCMP’s Fb and Twitter pages. Copyright © 2025 South China Morning Submit Publishers Ltd. All rights reserved.

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