HK could be financing platform for 'One Belt, One Road,' says financial chief

HONG KONG - Tsang Chun-wah, financial secretary of the Hong Kong Special Administrative Region (SAR) government, has revealed that Hong Kong should seize the golden opportunity of China's"One Belt, One Road"strategy in which Hong Kong could become a major financing platform.

"The'One Belt, One Road' strategy is another golden opportunity for Hong Kong after the reform and opening up. If we could seize the opportunity, Hong Kong's economic growth could have a fundamental momentum in the upcoming 30 to 50 years,"Tsang said in an exclusive interview with Xinhua.

"Look at what changes the reform and opening up has brought to Shenzhen and Hong Kong, you will understand why I regard the'One Belt, One Road' strategy as the potential gravity of Hong Kong's economic growth."

"One Belt, One Road"is a development strategy and framework proposed by China's central authorities which focuses on connectivity and cooperation among countries in Eurasia. It mainly consists of two components: the land-based 'Silk Road Economic Belt' and oceangoing 'Maritime Silk Road,' both of which had prominent roles in the history of China's ancient communication with Eurasian countries.

Why strategy crucial to HK

Tsang said among more than 60 countries along the belt and road, some emerging markets have no much differences from Shenzhen back to 30 years ago. If Hong Kong could take the opportunity and promote finance, trade, logistics, commercial professional services and tourism in those countries, its economy could achieve further leap.

Currently, trade and logistics contribute to about a quarter of Hong Kong's GDP growth, and finance accounts for about 16 percent with another 10 percent from professional services. Tsang believed that"One Belt, One Road"could not only provide more jobs for Hong Kong's young people, but also make contribution to China's economy.

"The whole world is in a process of globalization, and Hong Kong is an externally-oriented economy so we could no longer keep eyes only on local 7 million population and must seek added-value outside since local market is not sufficient to sustain the growth. "

"In 20 to 30 years, Hong Kong's GDP per capita could be increased by multiple times from current $40,000 on condition that we find new market to sustain such a growth,"said Tsang, 64, who has been serving as Hong Kong's chief financial official for eight years.

Advantages that HK has

Prior to becoming financial secretary of the HKSAR government, Tsang had held multiple positions of industry, trade and commercial affairs for governments in Hong Kong. He said Hong Kong has several unique advantages in promoting"One Belt, One Road" strategy.

In transport and logistics, Hong Kong is one of the world's shipping center and aviation hinge.

"Especially in air transport, Hong Kong has even more advantage. So far the air freight volume accounts for only 2 percent of the total volume of freight via Hong Kong but air freight value accounts for more than one-thirds of Hong Kong's total export value. We can do better."