CE Trumpets HK's Financial Clout At Beijing Event

The Chief Executive, Carrie Lam, on Thursday touted Hong Kong's experience in raising private capital as a major draw for various countries linked to the Belt and Road Initiative (BRI) at a forum in Beijing.

Lam told the delegates at the the second international BRI forum that Hong Kong is the perfect place to raise private capital to fund various public infrastructural projects.

"Given our status as an international financial centre, many Belt and Road economies aspire to draw foreign investments in infrastructure," she said.

"To attract more private capital for projects, it requires deep experience and expertise to assess and manage risks. Hong Kong is prepared to work with other economies in the region," Lam said.

Earlier Huang Kunming, a member of the politburo, said at the opening of the forum that there have been "some misunderstandings and unfounded rumours" about BRI that they hope to clear up, referring to the debt risks for participating countries.

But in a nod to the concerns over loans, Finance Minister Liu Kun said China would release a framework to "prevent debt risks", according to the state-owned China Securities Journal.

The "debt sustainability analysis framework" encourages Chinese financial institutions and BRI countries to voluntarily improve debt management levels, the report said.

International Monetary Fund chief Christine Lagarde said Liu's announcement and the increased focus on the long-term success of BRI projects were "very welcome steps in the right direction".

Lagarde told the forum that "sound financial regulation, transparent rules for investment, and attention to fiscal sustainability" were needed to successfully open capital markets, according to her prepared remarks.

Leaders from 37 countries have begun to arrive in Beijing for the three-day forum, with officials from scores of other nations in attendance.

Russian President Vladimir Putin and Italian Prime Minister Giuseppe Conte, whose country became the first G7 member to sign up to Belt and Road, are among the headliners. (Additional reporting by AFP)