The Northern Metropolis Financial Advisory Taskforce held its inaugural meeting on 17 June to discuss the financing needs of major upcoming development projects in the region.
Jointly established by the Hong Kong Monetary Authority (HKMA) and The Hong Kong Association of Banks (HKAB), the group aims to strengthen coordination between the banking sector, government agencies, and other stakeholders involved in the Northern Metropolis development.
Representatives from the Development Bureau and the Innovation, Technology and Industry Bureau presented details on key development projects and financing needs scheduled for the next three years.
These near-term opportunities include four land parcels in Phase 1 of the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone, as well as a pilot area in the Hung Shui Kiu and Ha Tsuen New Development Area, which are both currently under tender.
The information provided allows commercial banks to actively prepare business plans and allocate resources for these large-scale initiatives.
Participating institutions will support these projects through various mechanisms, including syndicated lending, bond underwriting, and traditional ancillary financial services.
Diverse financing structures
Because these infrastructure initiatives depart from conventional real estate developments, they will employ public-private partnerships, large-scale land disposal frameworks, and dedicated industry park corporations.
This means individual project scales, financing tenors, operating models, and durations will vary considerably from typical infrastructure builds.
The 21 participating banks in the taskforce committed to offering customised financing solutions designed for individual projects.
These tailored frameworks aim to accelerate industrial development and attract upstream and downstream enterprises to establish a presence in the Northern Metropolis.
Committing to sustainable finance
The taskforce also focused on environmental integration, pledging to support the co-existence of economic development and nature conservation.
Participating banks committed to referencing the Hong Kong Nature-based Solutions Design Guidelines and the HKMA’s Sustainable Finance Action Agenda when structuring sustainable finance solutions.
By referencing these frameworks, the banking sector aims to deliver sustainable finance options that meet international green standards.
Through this approach, participating banks aim to strengthen the long-term climate resilience of the local banking sector while supporting conservation efforts in the Northern Metropolis.
The advisory body was originally formed in April 2026 to strengthen communication between the financial sector, government bureaus, and infrastructure stakeholders.
Alongside the regulatory bodies and commercial banks, the Chinese Banking Association of Hong Kong and the Infrastructure Financing and Securitisation Unit of the Hong Kong Mortgage Corporation Limited participate as observers.
Featured image credit: Edited by Fintech News Hong Kong, based on image by HKMA