Hong Kong actively seeking to join Asian infrastructure bank, says financial secretary
City's multiple strengths stand it in good stead, top officials say amid a flurry of international interest in joining proposed regional lender
Hong Kong is seeking actively to join the new Asian Infrastructure Investment Bank (AIIB), a China-led regional version of the World Bank that has been attracting more countries to sign up as founding members ahead of the deadline on Tuesday.
Chief Executive Leung Chun-ying said he would discuss with Beijing how the city could get in on the act under the principle of "one country, two systems".
"Hong Kong's free port policy, efficient customs clearance, strong intellectual property protection and level-playing field provide strong support," he said in Hainan yesterday in a session at the Boao Forum for Asia. The city could also contribute to helping the renminbi become a global currency, he said.
In Hong Kong, Financial Secretary John Tsang Chun-wah said: "The government will actively pursue [membership of] the Asian Infrastructure Investment Bank. With our strengths in financial and professional services, we can contribute to the country as well as create opportunities for Hong Kong."
The new institution, with a capital target of US$100 billion, will aim to promote infrastructure development in regional states by providing loans.
A source familiar with the matter said that, depending on Hong Kong's mode of participation, the city should be prepared to fork out at least several billion Hong Kong dollars.
Simon Shen Xuhui, director of global studies at Chinese University, saw three ways in which Hong Kong could take part.
If membership was open to only sovereign states, the city could join the Chinese delegation. Otherwise, it could take part as a member economy, just like in the Asia-Pacific Economic Cooperation forum, or as a non-sovereign entity. "Joining the bank would ensure Hong Kong has a role to play in the international economy," Shen said.
In October, China and 20 other countries signed a memorandum of understanding to establish the AIIB.
Some see the bank as potentially rivalling the US-led World Bank and Japan-led Asian Development Bank, although China has denied any such intentions.
Its establishment could be a significant setback to the United States' efforts to extend its influence in the Asia-Pacific region to balance China's clout.
South Korea, a US ally, said on Thursday that it would join the AIIB. More US allies, such as Australia, are expected to be among as many as 35 states to become prospective founding members. Japan is exercising caution.
Mathias Cormann, Australia's minister for finance, said in Boao his country was comfortable with being part of the bank and could make an announcement soon.
Taiwanese President Ma Ying-jeou said Taiwan should take part actively in the AIIB's formation. Analysts say chances of its participation hinge on political issues, including the reaction of its pro-independence camp.
China's sovereign wealth fund, the China Investment Corporation, saw the AIIB as a potential partner in Asian investments. While AIIB would provide loans for projects, the CIC could make equity or capital investments as well as acquisitions, corporation chairman Ding Xuedong said.
