Mainland China

Case Reference Industry

Is SME Corner

Off

Managing risk on the Belt and Road

eric.yc.kwok@hktdc.org — Wed, 03 Oct 2018 09:05:24 +0000

Managing risk on the Belt and Road eric.yc.kwok@h… Wed, 10/03/2018 - 17:05

Global special risks consultancy, Control Risks, is working in Hong Kong with international and Chinese mainland firms to ensure they are “secure, compliant and resilient,” says the company’s Neal Beatty. Client firm Environmental Resources Management (ERM) meanwhile works closely with Control Risks as it aims to solve sustainability challenges on the Belt and Road. Hong Kong is an important centre for such professional services, says ERM’s Piers Touzel.

Speakers:
Neal Beatty, Partner and General Manager, Control Risks
Piers Touzel, Country Manager, China, ERM

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Professional Services

Country(ies) / Region(s)

Hong Kong

Case Reference Description

Control Risks, a Global special risks consultancy in Hong Kong, is working with international and Chinese mainland firms to ensure that they are “secure, compliant and resilient,” says the company’s Neal Beatty. Client firm Environmental Resources Management (ERM) meanwhile works closely with Control Risks as it aims to solve sustainability challenges on the Belt and Road. Hong Kong is an important centre for such professional services, says ERM’s Piers Touzel.

Case Reference Keyword

Belt and Road Initiative, Control Risks, Environmental Resources Management, Hong Kong, Risk Management

Case Reference Region (HKTDC)

Case Reference Industry

Is SME Corner

Off

Twenty-seven Global Institutions Sign up to Green Investment Principles for the Belt & Road

elaine.auyeung@hktdc.org — Fri, 03 May 2019 08:07:40 +0000

Twenty-seven Global Institutions Sign up to Green Investment Principles for the Belt & Road elaine.auyeung… Fri, 05/03/2019 - 16:07

03 May 19

Thursday 25 April 2019 (Beijing) – It was announced today that 27 global institutions have signed up to a set of voluntary principles – the Green Investment Principles (GIP) for the Belt and Road -- to promote green investment in the Belt &Road region.

The announcement was made at the GIP signing ceremony as part of the Financial Connectivity Forum organized by the People’s Bank of China (the Central Bank) and the Ministry of Finance in Beijing during the second Belt and Road High-level Forum. Deputy Governor Chen Yulu from the People’s Bank of China attended the GIP signing ceremony.

Chen Yulu, Deputy Governor of the People’s Bank of China

As a mandate from the China-UK Economic and Financial Dialogue in 2017, the Green Finance Committee of China Society for Finance and Banking and the City of London Corporation’s Green Finance Initiative led the initiative to develop the GIP, which was first published in London in November 2018. The World Economic Forum, UNPRI, Belt & Road Bankers Roundtable, the Green Belt and Road Investor Alliance and the Paulson Institute are also part of the drafting group. A full list of the principles is provided at the bottom of this release.

Building on existing responsible and ESG investment initiatives, the GIP aims to incorporate low-carbon and sustainable development practices into investment projects in Belt and Road countries, which will host the majority of the world’s infrastructure investments in coming decades.

Since its launch five months ago, the GIP has received strong backing from the global financial industry, including commercial banks, development banks, institutional investors, stock exchanges and other stakeholders that invest or help mobilize investment in the Belt and Road. As of April 25, 2019, twenty-seven institutions have signed up to the GIP. These institutions include (in alphabetical order):

Agricultural Bank of China, Agricultural Development Bank of China, Al Hilal Bank, Astana International Exchange, Bank of China, Bank of East Asia, China Construction Bank, China Development Bank, China International Contractors Association, China International Capital Corporation, Crédit Agricole-CIB, DBS Bank, Deutsche Bank, Export-Import Bank of China, First Abu Dhabi Bank, Habib Bank of Pakistan, Hong Kong Exchanges and Clearing, Industrial and Commercial Bank of China, Industrial Bank, Khan Bank, Luxembourg Stock Exchange, Mizuho Bank, Natixis Bank, Silk Road Fund, Standard Chartered Bank, Trade and Development Bank of Mongolia and UBS Group.

These signatories include all major banks from China that invest in the Belt & Road region and some of the largest financial institutions from (in alphabetical order) France, Germany, Hong Kong, Japan, Kazakhstan, Luxembourg, Mongolia, Pakistan, Singapore, Switzerland, United Arab Emirates and the United Kingdom. Several service providers, including Deloitte, Ernst & Young, KPMG and PWC, have also expressed their support for the GIP.

Ma Jun, Chairman of China’s Green Finance Committee, announced at the GIP signing ceremony that a Secretariat would be established to support future work of the GIP. The GIP Secretariat will work on expanding the membership, the development of implementation tools and case studies, a green project database for the Belt & Road, as well as compiling the progress report.

Chen Yulu, Deputy Governor of the People’s Bank of China, said at the signing ceremony: “The financial institutions represented here today are the leading institutions of green investment for the Belt and Road. I hope that all signatories can seize the great opportunity of the BRI, and actively promote the GIP and enhance their capacity for green investment.”

Dr. Ma Jun said: “The majority of global infrastructure investment in the coming decades will be in the Belt and Road region and they will have a significant impact on the implementation of the Paris Agreement and UN Sustainable Development Goals. The aim of the GIP is to ensure that environmental friendliness, climate resilience, and social inclusiveness are built into new investment projects in the Belt and Road.”

Ma Jun, Chairman of China Green Finance Committee

Catherine McGuinness, Chair of Policy at City of London Corporation commented: “While there is some way to go to ensuring the Belt and Road is truly green, today’s announcement is another step in the right direction, and a powerful statement of intent from financial firms in China, the UK and across the world.”

Catherine McGuinness, Chair of Policy at City of London Corporation

Family photo of major GIP Signatories

David Aikman, Chief Representative Officer of China and Member of the Executive Committee, World Economic Forum, addressed the importance of making GIP an opportunity for green transformation in the region and said: “It will be a shared opportunity for inter-connectivity, environmental friendliness and economic development through green investment in many countries around the world.”

Signatories also expressed their commitment to greening their investment practices with the implementation of GIP. “Business and economic ties between China, Europe, and BRI countries continue to strengthen”, said Werner Steinmueller, Deutsche Bank Management Board Member and Chief Executive Officer for Asia Pacific. “We are one of the most active foreign banks participating in BRI with full corporate and investment banking offerings along the route. By committing to the GIP, we are pledging that we will not only help steer BRI’s open collaboration across countries from China to Europe, but also strive to ensure these projects are as sustainable as possible.”

Gu Shu, President of Industrial and Commercial Bank of China, commented: “Green investments play a critical role in addressing environmental and climate challenges along the Belt and Road. ICBC has participated actively in the drafting of the GIP. We have also invited BRBR members to sign up to the GIP and integrate environmental factors into the BRI-related financing decisions, operations, product development and risk management.”

Gu Shu, President of Industrial and Commercial Bank of China

Bill Winters, Group Chief Executive of Standard Chartered PLC, stated: “We have been supporting our clients in managing their environmental and social risks for decades and are committed to working with all parties to implement the Green Investment Principles and contribute to commerce and prosperity across the Belt and Road markets.”

Benjamin Hung Pi Cheng, Regional CEO of Greater China & North Asia, Standard Chartered

Philippe Brassac, CEO of Crédit Agricole S.A and the Chairman of Crédit Agricole CIB, said: “Today, we reaffirm our ambition to be your long-term banking partner for your energy transition projects. A partner that is both realistic and demanding concerning the climate.”

“As China’s development finance institution and its major bank for the Belt and Road, the China Development Bank will stay committed to green finance, implement green investment principles, increase the provision of green finance, and grow the capacity for green development, to contribute to sustainable economic and social development along the Belt and Road”, said Hu Zhirong, Director of International Finance Bureau of China Development Bank.

Huang Liangbo, Vice President of Export-Import Bank of China, said: “To cater to the needs of the BRI participating parties to conserve resources, protect the environment and cope with climate change, the Export-Import Bank of China has been diversifying its financial products and services related to green projects, and played a major role in investing and financing green infrastructures.”

Lin Jingzhen, Vice President of Bank of China, said: “By signing up to the GIPs, it marks a milestone for Bank of China to integrate green development strategy into our efforts of supporting the construction of the Belt and Road ‘financial artery’. We look forward to working with international counterparts to foster the green and sustainable development along the Belt and Road.”

Qian Wenhui, President of Agricultural Development Bank of China, said: “Agricultural Development Bank of China will gather forces from all sides and assist domestic agriculture-related enterprise and projects to participate in the Belt and Road green investments.”

Tao Yiping, President of Industrial Bank, commented: “By proactively supporting the low-carbon, green and sustainable development of countries along the Belt and Road, GIP will support global financial institutions to establish more extensive and intensive corporations within multilateral frameworks and to increase environmental and social risk management ability.”

Xie Duo, Chairman of the Silk Road Fund, commented: “The Silk Road Fund, being a medium to long-term development and investment fund to support the BRI, is committed to implementing and promoting green investment philosophy, and dedicated to building a green Silk Road.”

Muhammad Aurangzeb, President and CEO of Habib Bank of Pakistan, said: “It is a great initiative taken by China Green Finance Committee and City of London for this GIP signing. As Pakistan’s largest Bank, and the largest executor of CPEC related financing in Pakistan, HBL is positioned to play an integral role towards a greener CPEC, with the ultimate goal of a greener BRI.”

Tim Bennett, CEO of Astana International Exchange, said: “The sign up to the GIP emphasizes the regional perspective of AIX to support infrastructure and economic development in Kazakhstan and in the region in accordance with environmentally and socially friendly international practices.”

Abdulhamid Saeed, Group Chief Executive Officer of First Abu Dhabi Bank, stated: “By becoming one of the first signatories to the GIP, we intend to take a more active role in the Belt and Road Initiative and in supporting global efforts to promote green investments within the UAE and beyond.”

For more information, please contact:

CHENG Lin

China Coordinator of the GIP, China Green Finance Committee

Tel: +86 (10) 8302 1702

Email: lin.cheng@greenfinance.org.cn

Simon Horner

Head of Policy and Innovation, City of London

Tel: +44 (0) 7721 977119

Email: simon.horner@cityoflondon.gov.uk

ANNEX: GREEN INVESTMENT PRINCIPLES FOR THE BELT AND ROAD

Principle 1: Embedding sustainability into corporate governance

We will embed sustainability into our corporate strategy and organisational culture. Our boards and senior management will exercise oversight of sustainability-related risks and opportunities, set up robust systems, designate competent personnel, and maintain acute awareness of potential impacts of our investments and operations on climate, environment and society in the B&R region.

Principle 2: Understanding Environmental, Social and Governance Risks

We will strive to better understand the environmental laws, regulations, and standards of the business sectors in which we operate as well as the cultural and social norms of our host countries. We will incorporate environmental, social and governance (ESG) risk factors into our decision-making processes, conduct in-depth environmental and social due diligence, and develop risk mitigation and management plans, with the help of independent third-party service providers, when appropriate.

Principle 3: Disclosing environmental information

We will conduct analysis of the environmental impact of our investments and operations, which should cover energy consumption, greenhouse gas (GHG) emissions, pollutants discharge, water use and deforestation, and explore ways to conduct environmental stress test of investment decisions. We will continually improve our environmental/ climate information disclosure and do our best to practice the recommendations of the Task Force on climate-related Financial Disclosure.

Principle 4: Enhancing communication with stakeholders

We will institute stakeholder information sharing mechanism to improve communication with stakeholders, such as government departments, environmental protection organizations, the media, affected communities and civil society organizations, and set up conflict resolution mechanism to resolve disputes with communities, suppliers and clients in a timely and appropriate manner.

Principle 5: Utilizing green financial instruments

We will more actively utilize green financial instruments, such as green bonds, green asset backed securities (ABS), Yield Co, emission rights based financing, and green investment funds, in financing green projects. We will also actively explore the utilisation of green insurance, such as environmental liability insurance and catastrophe insurance, to mitigate environmental risks in our operations.

Principle 6: Adopting green supply chain management

We will integrate ESG factors into supply chain management and utilize international best practices such as life cycle accounting on GHG emissions and water use, supplier whitelists, performance indices, information disclosure and data sharing, in our investment, procurement and operations.

Principle 7: Building capacity through collective action

We will allocate funds and designate personnel to proactively work with multilateral organizations, research institutions, and think tanks to develop our organizational capacity in policy implementation, system design, instruments development and other areas covered in these principles.

Mainland China

Short Code

Central and Eastern Europe

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Central Asia

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Latin America

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North America

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Northeast Asia

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Western Europe

Short Code

Africa

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Southeast Asia

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Australasia

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Language boundaries bring dubbing, subtitling business

elaine.auyeung@hktdc.org — Thu, 21 Feb 2019 04:12:44 +0000

Language boundaries bring dubbing, subtitling business elaine.auyeung… Thu, 02/21/2019 - 12:12

The Belt and Road Initiative will bring many opportunities for film and video dubbing, subtitling and related services, says YC Sun of BTI Asia. The global company set up its studio hub in Hong Kong to provide large, international clients with a host of Asian language skills for film and video, with a focus on new markets. The Guangdong-Hong Kong-Macao Greater Bay Area will also offer the chance to break through language barriers.

Speakers:
Y.C. Sun, Managing Director, APAC, BTI Asia
Ho Kwan Wai, Studio Technical Manager, B TI Asia
Louie Fong, Dubbing Director, BTI Asia

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Others

Country(ies) / Region(s)

Hong Kong

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, Guangdong-Hong Kong-Macao Bay Area, BTI

Case Reference Region (HKTDC)

Case Reference Industry

Others

Is SME Corner

Off

Hong Kong’s Belt and Road film and video hub

elaine.auyeung@hktdc.org — Thu, 21 Feb 2019 04:06:20 +0000

Hong Kong’s Belt and Road film and video hub elaine.auyeung… Thu, 02/21/2019 - 12:06

The Belt and Road Initiative can burnish Hong Kong’s role as a “movie and video hub” says Fred Wang of Salon Films (HK). Hong Kong can enhance that role to enhance its digital connectivity to host and trade film and video deals while the well-established annual HKTDC FILMART event provides an essential meeting place for global players in the film and TV marketplaces.

Speaker:
Fred C.Y. Wang, Chairman, Salon Films (HK) Ltd

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Hong Kong International Film & TV Market (FILMART) 2019
https://event.hktdc.com/fair/hkfilmart-en/Hong-Kong-International-Film---TV-Market--FILMART-/

Market(s)

Mainland China

Sector(s)

Others

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, Salon Films (HK), HKTDC FILMART

Case Reference Region (HKTDC)

Case Reference Industry

Others

Is SME Corner

Off

Movie, video “standard bearer” for the Belt and Road

elaine.auyeung@hktdc.org — Thu, 21 Feb 2019 03:23:15 +0000

Movie, video “standard bearer” for the Belt and Road elaine.auyeung… Thu, 02/21/2019 - 11:23

From 1950’s Hollywood to high-kicking martial arts movies, Salon Films (HK) has been an Asian pathfinder for film, TV, video and related productions. Chairman Fred Wang says Hong Kong’s great traditions in the media sector can make it an industry standard for productions related to the Belt and Road Initiative and Guangdong-Hong Kong-Macao Greater Bay Area.

Speaker:
Fred C.Y. Wang, Chairman, Salon Films (HK) Ltd

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Others

Country(ies) / Region(s)

Hong Kong

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, Guangdong-Hong Kong-Macao Bay Area

Case Reference Region (HKTDC)

Case Reference Industry

Others

Is SME Corner

Off

BPS Global Group – Providing integrated logistics support to a mainland Belt and Road harbour project

elaine.auyeung@hktdc.org — Tue, 12 Feb 2019 06:21:43 +0000

BPS Global Group – Providing integrated logistics support to a mainland Belt and Road harbour project elaine.auyeung… Tue, 02/12/2019 - 14:21

Hong Kong-based BPS Global Group is a logistics infrastructure service provider that offers integrated engineering building services and automated logistics solutions to its customers across Asia. Founded in 1992 and headquartered in Hong Kong, the company deals with projects including industrial and logistic parks, warehouse automation and equipment, logistic technology, construction and engineering, investment and real estates, and e-commerce platforms.

As China’s Belt and Road Initiative gathers momentum, BPS Global has recently completed a project with a business partner from a Belt and Road country. Whereas many collaborations between China and Belt and Road countries so far have involved Chinese firms establishing a presence on the Belt and Road, in a way that echoes China’s development strategy of “going global”, BPS Global’s partnership with Indonesia’s Salim Group is a typical case of “bringing in”, another state strategy which involves the inflow of foreign capital into China.

Indonesia’s biggest conglomerate, Salim has interests ranging from palm oil plantations to media companies. In late 2015, its Chinese mainland-based subsidiary Salim Wanye Shanghai Enterprise Group came up with a plan to build a harbour in Fujian Province specialising in importing food products from Southeast Asia. Positioned as an “international industrial food park”, the harbour is to be located on a site owned by Salim within the Yuanhong Investment Zone in Fuqing City of Fujian. The project involves an estimated investment of 6 billion renminbi.

Salim’s original idea was to use the harbour to import aqua products, frozen meat and fruits from Southeast Asia to the Chinese mainland. The perishable nature of the imports meant careful logistics planning was of paramount importance. Before setting the project in motion, Salim had to commission a logistics consultancy firm to study the feasibility of the plan and provide logistical solutions. With the help of the Hong Kong Trade Development Council’s Fujian office, which helped identify a number of candidate companies based in Hong Kong, Salim eventually decided to select BPS Global, which has affiliated companies in various mainland cities including Beijing, Shanghai and Guangzhou, and also Singapore.

The role of BPS Global, which had previously handled similar projects including Humen Port and Nansha Port in Guangdong Province, involved carrying out a feasibility study and devising logistical plans. In practice, there were a variety of tasks, including designing the layout of the industrial park and working out a multi-phase development scheme for the project. The Hong Kong company also conducted a study on the feasibility of Salim’s idea of importing frozen food. One conclusion of the study, which featured a wealth of analysis and data, was that Xiamen, a port city in southern Fujian, has abundant supplies of frozen meat and fruits. BPS Global advised Salim against entering the fray and to focus on importing seafood instead, a suggestion that Salim eventually heeded. BPS Global then took reference from fish markets in Hong Kong and Tokyo and drew up detailed logistical plans, including how to keep the imported seafood fresh, what fish species should be frozen, what equipment should be used and meticulous transportation plans.

In the space of less than six months, BPS Global completed its task. The next step is for Salim to construct the harbour and related infrastructure, which should take one to two years to complete.

By applying advanced logistics concepts and technologies and by drawing on its wealth of industry experience to provide integrated logistics support, BPS Global has demonstrated how a Hong Kong logistics expert can help smooth the way for companies in Belt and Road countries to seize business opportunities in China. Through its involvement in the harbour project, the Hong Kong company has also played a part in helping the mainland attract investment from Belt and Road countries, effectively promoting the Belt and Road Initiative, which is designed to benefit all parties involved.

Market(s)

Mainland China

Southeast Asia

Sector(s)

Transport and Logistics

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, Connect and Excel, logistics infrastructure, service provider, BPS Global Group

Case Reference Region (HKTDC)

Asia

Case Reference Industry

Logistics & Supply Chain

Is SME Corner

Off

Facilitating Belt and Road financing and M&A

elaine.auyeung@hktdc.org — Fri, 18 Jan 2019 07:09:20 +0000

Facilitating Belt and Road financing and M&A elaine.auyeung… Fri, 01/18/2019 - 15:09

From Chinese mainland firms’ legal structuring to major project development in ASEAN and Russia, Hong Kong is proving a focus for Belt and Road-related financing and mergers and acquisitions, say partners from law firm Bryan Cave Leighton Paisner. The Greater Bay Area development plan is also seen as a “massive opportunity” for Hong Kong companies to play a key role in planning and governance.

Speakers:
Ian Ivory, Partner, Bryan Cave Leighton Paisner
Ilan Freiman, Partner, Bryan Cave Leighton Paisner
Cora Kang, Registered Foreign Lawyer PRC, Bryan Cave Leighton Paisner

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Professional Services

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, Bay Area, legal structuring, major project development, ASEAN, Russia, financing, mergers and acquisitions, Greater Bay Area development, massive opportunity

Case Reference Region (HKTDC)

Case Reference Industry

Is SME Corner

Off

Hong Kong’s legal advantage on the Belt and Road

elaine.auyeung@hktdc.org — Fri, 18 Jan 2019 07:02:34 +0000

Hong Kong’s legal advantage on the Belt and Road elaine.auyeung… Fri, 01/18/2019 - 15:02

The transparency and predictability of English law as practiced in Hong Kong underpin huge opportunities for developing Belt and Road projects and transactions, according to the co-authors of a book published by legal firm Bryan Cave Leighton Paisner. Also, the Belt and Road Initiative has built significant momentum in a short time to already prove very successful.

Speakers:
Ian Ivory, Partner, Bryan Cave Leighton Paisner
Ilan Freiman, Partner, Bryan Cave Leighton Paisner
Cora Kang, Registered Foreign Lawyer PRC, Bryan Cave Leighton Paisner

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Professional Services

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, English law, developing Belt and Road projects and transactions, Bryan Cave Leighton Paisner

Case Reference Region (HKTDC)

Case Reference Industry

Is SME Corner

Off

Flying high on the Belt and Road

elaine.auyeung@hktdc.org — Fri, 18 Jan 2019 06:46:43 +0000

Flying high on the Belt and Road elaine.auyeung… Fri, 01/18/2019 - 14:46

Hong Kong-based CALC is among the world’s top 10 aircraft leasing companies in the freight sector, says CEO Mike Poon. He says Hong Kong is an easy location for expertise in the sector, which also includes orders for aircraft parts, re-sale and recycling. CALC is connected to the Belt and Road Initiative through what is now called the “Aviation Silk Road”.

Speaker:
Mike Poon, CEO, China Aircraft Leasing Group Holdings Limited

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Market(s)

Mainland China

Sector(s)

Transport and Logistics

Case Reference Description

Case Reference Keyword

Belt and Road, Success Story, China Aircraft Leasing Group Holdings Limited, CALC, aircraft leasing company, freight sector

Case Reference Region (HKTDC)