HONG KONG: The city’s government will soon seek approval from the Legislative Council to buy HK$1.2 billion worth of shares in the Asian Infrastructure Investment Bank (AIIB) over five years, in the clearest sign of the city’s participation in the institution. According to government documents to the Legco, the central government had submitted the AIIB application on behalf of the city. Non-sovereign applicants have to go through existing members that look after their international relations. Membership to the institution is open to members of the Asia Development Bank, of which Hong Kong is part. The money will be paid in five instalments – HK$240 million per year – for 7,651 shares out of one million, translating to an about 0.7 per cent stake in the bank. The AIIB, headquartered in Beijing, is considered to be part of China’s “go global” strategy. It aims to support infrastructure developments in Asia, estimated to cost US$40 trillion (HK$310 trillion) from 2015 to 2030.
The Hong Kong government’s plan to join the AIIB appeared to have support across the political spectrum. “It is a good opportunity for Hong Kong professionals to be able to engage in work sponsored by AIIB, be it in engineering, consultancy, financing and project management, just to name a few,” said Kenneth Leung of the accounting constituency. “The HK$1.2 billion is calculated based on a percentage of our GDP, and is a reasonable commitment,” said Leung, who is also the financial affairs panel’s deputy chairman. Abraham Razack, a pro-establishment lawmaker representing the real estate sector, said it would help to promote the city’s status as an international financial centre. “We need to find new ways to grow our economy – whether it is One Belt, One Road or Asia, they are big markets that are developing with big opportunities,” said Razack, a member of Legco’s financial affairs panel.
