Hong Kong’s Northern Metropolis is expected to generate at least 13 percent of the city’s gross domestic product, with technology-related activities accounting for about four percentage points of the total, and creating 500,000 new jobs, Financial Secretary Paul Chan Mo-po said on Sunday, citing an estimate by a global investment bank.
This would position the mega project as a key engine for the special administrative region’s future economic growth, Chan wrote in his weekly blog.
He said the Northern Metropolis’ development has reached a new milestone as the tender results for the first pilot area under its large-scale land disposal program had been released earlier.
The HKSAR government said last week an 11-hectare pilot site, located in the Hung Shui Kiu/Ha Tsuen New Development Area, will be awarded to HSK New Development with a bid price of HK$1.03 billion ($132 million). The winning consortium comprises six shareholders, including China Overseas Land and Investment, China Merchants Land, and China Resources Land.
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Chan said the consortium brings together companies across various sectors, giving it capabilities spanning infrastructure development, technological innovation, facility operations, supply chain management, commercial networks and ecological development.
“The tenderer will bring an investment of about HK$16.8 billion for the implementation of the whole pilot project, and is anticipated to create over 6,000 employment opportunities in sectors like construction, logistics operations, and commercial management,” he said.
The government will maintain communication with the market, closely monitor market conditions and issue calls for bids for other areas at the appropriate time.
To realize the Northern Metropolis’ ambitious blueprint, it’s also essential to tap into the vast resources of the financial markets to secure stable funding for large-scale, long-term construction projects, the finance chief said.
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One of the major sources of capital support is the bond market. Chan noted that, as of May, the HKSAR government had issued green bonds and infrastructure bonds totaling HK$27.6 billion. Total subscriptions reached nearly HK$240 billion, with the offering oversubscribed by around 8.6 times and drawing investors from more than 30 markets across Asia, Europe, the Middle East and the Americas.
He said investor demand for Hong Kong dollar-denominated bond products, also known as wonton bonds, has risen significantly given the current international geopolitical landscape.
By mid-August, the issuance of wonton bonds this year had exceeded HK$670 billion -- up nearly 80 percent year-on-year -- Chan said, citing market data.
“This not only reflects international investors’ vote of confidence in Hong Kong’s public finances, exchange rate stability, and development prospects, but also provides ample room for us to continue leveraging market resources to accelerate the development of the Northern Metropolis.”
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Chan also noted that, with both funding and land secured, the government will actively guide market forces to invest in substantive industries, seeking to attract high-value-added, high-potential industries and high-quality enterprises to the Northern Metropolis.
“We’re building a diverse and dynamic engine for the integrated development of technology, industry, and talent,” he said.
These efforts will accelerate the reshaping of the SAR’s economic and industrial structure, enabling the city to better integrate into the nation’s overall development, drive more sustainable socio-economic development, and provide residents with a wider range of quality jobs and a better living environment, Chan said.
Contact the writer at: gabylin@chinadailyhk.com
