Chan Mao-bo: The first district project bid in Hong Kong North has been successfully awarded, and the new public-private collaboration model has been smoothly implemented.

On August 30, Paul Chan Mo-po, the Financial Secretary of the Hong Kong SAR Government, published a blog outlining the latest progress of the Northern Metropolis. Paul Chan Mo-po stated that the Northern Metropolis is an important new engine for Hong Kongs future economic growth. The first development project in the Hung Shui Kiu area has been successfully tendered, with a total investment of approximately HKD 16.8 billion, expected to create over 6,000 job opportunities, marking a new journey for the development of the Northern Metropolis. Paul Chan Mo-po pointed out that the 11-hectare area located in Hung Shui Kiu has moved away from the traditional cash tendering model that favors the highest bidder, adopting a two-envelope system that places more emphasis on the long-term contributions of the tender content to Hong Kong's industrial development and overall economy. The winning company is composed of six consortiums from different industries, combining local developers, state-owned enterprises from the mainland, and large e-commerce technology companies. The winning company will invest approximately HKD 16.8 billion in the entire project, which is expected to create over 6,000 job opportunities. Paul Chan Mo-po indicated that the innovative area development model effectively mobilizes private market resources, making good use of market flexibility, sensitivity, expertise, and experience to accelerate project progress while reducing the governments cash input, which can be seen as a win-win situation. The successful tendering of this area has paved the way for a new public-private partnership model, marking a milestone for the entire Northern Metropolis development. He mentioned that the blueprint for the Northern Metropolis is grand, with research from major banks estimating that it will create 500,000 new jobs and contribute at least 13% to Hong Kong's GDP. To realize this blueprint, in addition to innovative land policies, it is essential to leverage the vast resources of the financial market. Paul Chan Mo-po revealed that in April this year, the Hong Kong Monetary Authority and the Hong Kong Association of Banks established a financial advisory working group for the Northern Metropolis, consisting of 23 banks with experience in financing large projects, to explore tailored financing arrangements based on the characteristics of different Northern Metropolis projects. Paul Chan Mo-po stated that in May this year, HKD 27.6 billion worth of green bonds and infrastructure bonds were successfully issued, with a total subscription amount close to HKD 240 billion, oversubscribed by about 8.6 times, attracting investors from over 30 markets worldwide. From the beginning of this year to mid-August, the issuance of Hong Kong dollar bonds has exceeded HKD 670 billion, a year-on-year increase of nearly 80%. This reflects international investors' confidence in Hong Kong and provides ample space for accelerating the development of the Northern Metropolis. Paul Chan Mo-po said that once the funding and land are in place, the success of the Northern Metropolis ultimately depends on its ability to attract high-value and high-potential industries as well as quality enterprises to settle in. Hong Kong Investment Management Company will continue to align its investments with the national 14th Five-Year Plan, extending investments into future industries such as embodied intelligence, commercial aerospace, and brain-computer interfaces. One of the Hong Kong investment companies is set to hold a launch ceremony tomorrow for the establishment of Siasun Robot & Automations fully autonomous retail store in Hong Kong. Paul Chan Mo-po also mentioned that the Hong Kong Science Park will hold an industry acceleration summit on co-creation and co-investment next week, gathering over 200 start-ups and more than 200 investors, linking innovation and technology resources from the Greater Bay Area and the Yangtze River Delta. Paul Chan Mo-po expressed that from accelerating the release of land value through area development to providing long-term funding from the financial market, and the active guidance of industry settlement by Hong Kong investment companies and the Science Park, this chain from land, funds to industries will speed up the reshaping of Hong Kong's economic structure.