MANILA, Philippines — Philippine companies could tap the Hong Kong market to raise funds for their “green” spending, as the Southeast Asian nation emerges as one of the fastest-growing renminbi markets in the region.
Christopher Hui, Hong Kong’s secretary for financial services and the treasury, floated the idea during his recent visit in Manila to attend the 55th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB).
Hui explained that financial institutions in the Philippines and ASEAN may explore the fintech applications developed in Hong Kong and adopt them in local markets.
Specifically, he said the Guangdong-Hong Kong-Macao Greater Bay Area development offers Hong Kong and the Philippines “boundless opportunities” in areas such as renminbi business and green finance.
“The huge demand for infrastructure in the country (Philippines) is noteworthy,” Hui said in a statement.
“Hong Kong, by leveraging its diversified investment and financing platform for equities and bonds as well as its professional services and multi-level connectivity with the Mainland’s capital market, can cater for such development demand,” he added.
In 2019, the Philippine government raised 2.5 billion renminbi ($363.3 million) from its second sale of so-called “panda” bonds.
The Philippines first tapped the panda bond market in March 2018, raising RMB1.46 billion ($230 million).