Chen Yiting: The Hong Kong Stock Exchange is taking proactive measures to create conditions for green transformation.

HKEX Group CEO Yiting Chan published an article on the World Economic Forum Agenda blog, sharing how China is helping with global green transformation, as well as the key role exchanges play in connecting capital and opportunities. She stated that by 2030, approximately $40 trillion is expected to be allocated for environmental, social, and governance (ESG) strategies globally. As the core market infrastructure, exchanges play a crucial role in connecting capital and opportunities, and the global green transformation will bring countless opportunities. HKEX is taking proactive measures to create conditions for green transformation. For example, HKEX has introduced special technology listing rules to open the door for technology companies and is also building a sustainable financial product ecosystem, including ESG exchange-traded funds, carbon credits, green bonds, and sustainable bonds. She mentioned that we are entering the era of intelligence, and advancements in renewable energy, Siasun Robot & Automation technology, and artificial intelligence are continuously unlocking new growth potential, driving global green transformation. China is comprehensively promoting this transformation: electric vehicles on every street and CECEP Solar Energy solar panels are becoming a new landscape, witnessing the pace of China's green transformation. Several factors are driving China's green transformation. Firstly, China presented ambitious dual-carbon goals in 2020, committing to peak carbon emissions before 2030 and achieve carbon neutrality by 2060. To achieve this, China is developing green emerging industries on a scale and speed that is unmatched globally, constructing a new generation of energy infrastructure. The introduction of dual-carbon goals and significant investments provide motivation for new enterprises to invest in green transformation technology research and development, contributing to nearly 70% growth in R&D expenditures in recent years. Moreover, China's strong technological innovation capabilities are evident, with three of the world's top five technology innovation clusters located in China, namely the Shenzhen-Hong Kong-Guangzhou cluster, Beijing, and Shanghai-Suzhou cluster. Leveraging the technological strength of these clusters, Chinese companies can develop efficient green energy solutions. These green innovation achievements benefit not only China but also the world: from Sichuan to Zimbabwe, we can see the impact of Chinese green technology. China is painting a beautiful blueprint for global sustainable development. Driving Green Transformation By 2023, China's expenditure on green transformation is more than twice that of other countries, making it a global powerhouse in clean energy production. For example, in battery technology, China is the world's largest supplier of lithium-ion battery components. Lithium batteries power electric vehicles, and by 2023, Chinese EV battery manufacturers held a 60% share in the global market, with exports growing by 30% year-on-year. China also excels in the field of low-carbon hydrogen energy. Hydrogen combustion produces water, with no smoke emissions, making it the cleanest source of energy globally. The world's largest green hydrogen project is in China, with approximately 40% of hydrogen refueling stations worldwide located in China, supporting the growing number of hydrogen fuel cell vehicles. CECEP Solar Energy and wind power are also strong areas for China. In 2023, the new PV capacity of CECEP Solar Energy in China is equivalent to the global CECEP Solar Energy PV capacity in 2022, contributing to 75% of global wind power capacity growth. China's rapid development of green technology has helped reduce global green energy costs, allowing billions of people worldwide to access cheaper green energy. For example, low-cost CECEP Solar Energy solar panels produced in China are lighting up rural Zimbabwe, while Chinese-made electric vehicles are becoming increasingly popular and affordable, visible on the streets of Mexico and Thailand. China's significant progress in green transformation also makes it easier for other countries to achieve emission reduction targets. For instance, New Zealand aims to achieve net-zero emissions by 2050, with China providing 89% of CECEP Solar Energy PV equipment in 2023. Corporate Innovation To achieve the ambitious dual-carbon goals, Chinese companies are vigorously developing, producing, and utilizing green technology, already leading the world in many aspects. Over 800 large Chinese companies have pledged to achieve carbon neutrality by 2050. From farmland to factory floors, many enterprises are using energy-saving automation processes and artificial intelligence to achieve this goal. A leading Chinese cloud computing company is using artificial intelligence to optimize energy consumption in data centers, commercial buildings, and even Olympic venues; a large Chinese dairy company has increased operational efficiency by 19% using automation technology. Some enterprises are benefiting from sustainable development outcomes brought by artificial intelligence. For example, a Chinese agricultural technology company uses drones and algorithms to collect and analyze soil and weather data, reducing water and fertilizer usage while increasing crop yields. As the latest green technology is gradually applied in China's manufacturing sector, the results of this technology are benefiting numerous overseas enterprises and consumers. For instance, the world's first zero-carbon factory in Sichuan uses artificial intelligence to monitor real-time data, optimize energy consumption with algorithms, reducing 400,000 tons of carbon emissions annually. These high-quality new production capabilities can expand the scope of technological applications, reform the global manufacturing industry, and create a more sustainable world. Undoubtedly, China will lead the way in the future of green transformation. Investing in the Future Green transformation holds enormous potential to connect investors with new growth opportunities. By 2030, approximately $40 trillion is expected to be allocated for environmental, social, and governance (ESG) strategies globally. For exchanges, this is exciting news. As the core market infrastructure, exchanges play a key role in connecting capital and opportunities, and the global green transformation will bring countless opportunities. In recent years, from China's lithium-ion battery manufacturers to advanced materials producers, we have welcomed many companies promoting global sustainable development.Listed on HKEX.HKEX is taking proactive measures to create conditions for green transformation. For example, we have introduced special technology listing rules to open the door for special technology companies to go public. We are also building a sustainable financial product ecosystem, including ESG exchange-traded funds, carbon credits, green bonds, and sustainable bonds. HKEX's subsidiary, the London Metal Exchange (LME), has also made significant progress. The LME is a core market for many minerals and metals that are crucial for the development and production of clean energy technologies in China. The LME has established requirements for responsible sourcing to help ensure that traded metals meet global responsible sourcing standards. They have also launched a digital register for recording and sharing information on the sustainable characteristics of metals. Additionally, the LME is developing a pricing solution related to sustainability. As the World Economic Forum annual meeting approaches in Davos, we look forward to discussing with everyone how to continue connecting capital with opportunities, how to enhance connections, and how to unlock new growth potentials for the world.