‘Belt and Road’ initiative: A ‘once-in-a-lifetime’ journey

China’s “Belt and Road” initiative offers once-in-a-lifetime opportunities for various business sectors in Hong Kong SAR, and will strengthen the city’s traditional role as the “super connector” and global financial hub, while driving growth for next-generation businesses, panelists told the China Daily Asia Leadership Roundtable on Thursday.
Such opportunities are for countries along the “Belt and Road” to pursue, and all shareholders must strive to explore the potential available, they urged.
Chief Executive Leung Chun-ying, in a keynote address to the roundtable forum, themed “Hong Kong Unleashing the Potential of ‘Belt and Road’ Initiative”, said Hong Kong will be the best placed Chinese city to contribute to the “Belt and Road” initiative if the SAR can lift its social capital.
“More than a city of China, Hong Kong maintains a reputable standing and valuable connections in the international arena,” he told the forum, jointly organized by China Daily and the Hong Kong General Chamber of Commerce (HKGCC).
“That sets us apart from other cities on the mainland and overseas. That’s how we can unleash the tremendous potential of the ‘Belt and Road’ initiative.
“The ‘Belt and Road’ will help power the future for the Chinese mainland, for over 60 economies along the link and for Hong Kong. All of us can take part in this once-in-a-lifetime journey if we seize the opportunity today,” Leung said.
Launched by President Xi Jinping in 2013, the “Belt and Road” strategy aims to boost trade ties and facilitate economic cooperation among 65 economies along the ancient silk route. With China as the starting point, the Silk Road Economic Belt and the 21st Century Maritime Silk Road will stretch to Eastern Europe, Central and South Asia, as well as the east coast of Africa.
In welcoming remarks, Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, told the conference: “At a time of general slowdown in markets worldwide, forging and renewing trade ties between different economies is the only way forward. This is also a moment of stocktaking and introspection — a moment to assess the strategic importance of our place in the program.”
“The ‘Belt and Road’ initiative holds great promise for Hong Kong, both in terms of its own growth as a major economic force, as well as in its ability to contribute to the economic prosperity of China,” Zhou said.
HKGCC Chairman Y.K. Pang called the “Belt and Road” initiative a “game changer” for many countries.
Supporting growth
“They don’t necessarily have enough money, resources, manpower or expertise to lift their development to the next level. But China, through the initiative, will support and accelerate growth of those countries, much faster than what would be organically possible. Our members are very excited to be part of something bigger — to change the livelihood of people in the ‘Belt and Road’ regions,” he said.
“Hong Kong has a major role to play in the initiative. We have the proximity that Beijing and Shanghai don’t,” Pang stressed, adding that 80 percent of the ‘Belt and Road’ countries are within a five-hour flight from Hong Kong.
“Even not in infrastructure, engineering or finance, Hong Kong companies will be able to tap into the consumption money in ‘Belt and Road’ economies, as investments would trickle down from these sectors.”
Chow Chung-kong, chairman of Hong Kong Exchanges and Clearing Ltd, told the gathering that the initiative is “a real driver of economic growth”. “More than just the redistribution of wealth, it’s the engine to create new economic dynamics. Hong Kong can facilitate such economic activities and benefit from them.”
He said the existing funding is not enough to fund the goals of the initiative. “To make the ‘Belt and Road’ succeed, the commercial sector must get involved. Unless the ‘smart money’ is invested in sensible and profitable projects, the initiative will not achieve its full potential. Fundraising is where Hong Kong can play a key role, either through simple syndicated loans, bond issuance or in the equity market.”
However, Chow warned that “opportunities are not served on a silver plate”. “Until we can build up knowledge of the economies along the routes and the sectors that require investment, we cannot fully explore the opportunities.”
Tackling new markets
Victor Fung Kwok-king, chairman of Fung Group, said the “Belt and Road” initiative will further lift Hong Kong’s traditional position as the world’s “super-connector” and help the city seize emerging market opportunities.
“Looking forward for 30 years, the global consumption pattern is shifting rapidly. In developing countries arise the new middle class. The ‘Belt and Road’ is a linkage and a handle to tackle these new markets,” he said.
Lincoln Leong Kwok-kuen, chief executive officer of MTR Corporation Ltd (MTRC), said: “Super connectivity is bridging culture divide, taking Hong Kong to work with companies on the mainland, outside of Hong Kong and mainland domain.”
In terms of a new business model, he said it needs to be not just relevant, but also highly competitive in the “Belt and Road” countries.
“One of the things we have been spearheading at MTRC is the business model in Hong Kong, which many countries try to replicate,” Leong said. “We incorporate property and infrastructure development and take external profits from the property and internalize it to help finance infrastructure development.”
To connect the 65 countries with different cultures, legal systems and ways of doing things along the linkage, Vincent Lo Hong-shui, chairman of the Hong Kong Trade Development Council (HKTDC), said Hong Kong should become the hub for the “Belt and Road”.
To start with, he said the HKTDC will launch a “Belt and Road” website in the near future to provide all information on the 65 countries. “Hopefully, we can identify investment opportunities and integrate them so that the world can get involved, because this is not a project China or any one company can take on its own.”