The Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) has confirmed that it will open a hub office in Hong Kong – a move that will enhance its offshore financing capabilities and the city’s role as a global financial centre.
Preparatory work is in the pipeline and progressing well, the Post has learned from the bank. A formal announcement is expected to be made by AIIB President Jin Liqun, who is scheduled to address Hong Kong FinTech Week on Monday.
The AIIB’s second office outside mainland China – the first was launched in Abu Dhabi two years ago – is expected to become operational next year.
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“I am pleased to announce that our discussions with the Hong Kong authority on establishing a hub is in the final stage… This Hub has the dual function of private sector mobilization and fund-raising from the capital market,” Jin said.
The hub office will serve as an interface for AIIB’s investment and treasury operations, including collaborating with local partners such as banks and funds to originate and deliver infrastructure projects that benefit its 110 members.
The office would also leverage the depth and liquidity of Hong Kong’s capital markets to support its funding and financing activities, the bank said.
The expansion comes as Jin’s 10-year tenure as the AIIB’s president draws to a close. Under his leadership, the bank has become one of the world’s largest development finance institutions, with US$64.6 billion of financing approved for 338 projects.
Jin, 76, will be succeeded by the 62-year-old Zou Jiayi in January. Like her predecessor, Zou is a former Chinese vice-minister of finance.
Former vice-minister of finance Zou Jiayi will succeed Jin Liqun as Asian Infrastructure Investment Bank president in January. Photo: Handout alt=Former vice-minister of finance Zou Jiayi will succeed Jin Liqun as Asian Infrastructure Investment Bank president in January. Photo: Handout>
Hong Kong, which holds a membership stake of 0.7837 per cent in the multilateral development bank, has increasingly become one of its key fundraising locations.
The AIIB launched its first HK dollar-denominated public bond in February, raising HK$4 billion with an annual coupon of 3.847 per cent.
During the bank’s annual meeting in Beijing in late June, Hong Kong Financial Secretary Paul Chan Mo-po expressed a willingness to enhance collaboration with the bank and also witnessed the signing of a strategic partnership agreement between the Hong Kong Monetary Authority and the AIIB.
