Hong Kong expertise ‘can put OBOR on road to success’

There is little doubt that China’s “One belt, one road” (OBOR) initiative to boost economic ties with countries along the old trading routes between Asia and Europe will have a significant impact in the years ahead.

But with ideas still forming, and concrete plans yet to materialise, what may in fact happen remains largely a matter of speculation, interpretation and educated guesswork.

“At this point, it is still a conceptual framework,” says professor Kalok Chan, dean of Chinese University (CUHK) Business School. “But the intention behind it is clear: to promote collaboration among countries in Asia. That means we will see a lot of infrastructure built, more trade-related and logistics services, and there will also be the funding side to think of, in order to support these other developments.”   

Just within the 10-nation Asean grouping, there is a clear need for investment to upgrade transportation and port infrastructure. And if that gets the green light, it should almost automatically create wider opportunities for cities like Hong Kong with their expertise in fundraising, engineering and other professional services.

“Any such direct stimulus can boost economic co-operation, with the chance for both public and private sectors to get involved,” Chan says. “Hong Kong in particular, can act as a hub providing legal, financial, consulting and technical support for projects in Asia and beyond.”

For example, even though the Beijing-led AIIB (Asian Infrastructure Investment Bank) is likely to take the lead in raising funds, there is every reason to think Hong Kong can also make a substantial contribution. As a recognised offshore centre for trading renminbi (RMB) and issuing RMB-denominated bonds, the city has a head start in putting together certain types of syndicated loan, and should look to stretch that advantage.