Northern Metropolis Financial Advisory Taskforce holds its second meeting

On Wed, 26 Aug, the Northern Metropolis Financial Advisory Taskforce (the "Taskforce"), jointly established by the Hong Kong Monetary Authority (""HKMA"") and The Hong Kong Association of Banks (""HKAB""), convened its second meeting to deliberate on mechanisms through which the banking sector may facilitate the implementation of Northern Metropolis projects via diverse financing structures.

Background

The Taskforce was established in April 2026 with a mandate to enhance communication and collaboration between the banking sector, the Government of the Hong Kong Special Administrative Region (the "HKSAR"), and other relevant stakeholders, with a view to exploring proactive financing support for Northern Metropolis development. The Taskforce comprises representatives from HKMA, HKAB, and twenty-three (23) banks possessing experience in large-scale project financing. The Chinese Banking Association of Hong Kong and the Infrastructure Financing and Securitisation Unit of the Hong Kong Mortgage Corporation Limited participated as observers.

Government Funding Commitment and Development Models

The Financial Services and the Treasury Bureau (""FSTB"") presented at the meeting an overview of the diversified development models adopted by the Government to expedite Northern Metropolis development, including the establishment of dedicated industry park companies for participation in industrial development and operations, as well as public-private partnerships (""PPPs"") designed to harness market forces in accelerating project delivery. FSTB further confirmed that funding secured from the Legislative Council Finance Committee for Northern Metropolis-related public works projects had exceeded HK$180 billion as at July 2026¹, underscoring the Government's sustained commitment to the initiative. In this regard, the Government has injected HK$10 billion into each of three dedicated industry companies: Hong Kong-Shenzhen Innovation and Technology Park Limited, Hung Shui Kiu Industry Park Company Limited, and San Tin Technopole Company Limited².

Industry Park Collaboration Opportunities

Hung Shui Kiu Industry Park Company Limited provided a briefing on the development direction, strategic framework, operational models applicable to the Industry Park, and identified collaboration opportunities available to the banking sector. The purpose of this presentation was to enable participating banks to prepare in advance for the provision of project financing and ancillary financial services in support of industry park initiatives.

PPP Financing Workstream

In recognition that a significant proportion of Northern Metropolis projects would adopt varied PPP structures, a dedicated Workstream on PPP Financing (the "Workstream") was established under the Taskforce to promote the exchange of industry expertise. The six member banks³ comprising the Workstream presented case studies drawn from both the Chinese Mainland and overseas jurisdictions, encompassing large-scale land disposal, education, transportation, and infrastructure projects. Going forward, the Workstream will examine applicable development models and risk mitigation measures designed to enhance project bankability for Northern Metropolis initiatives, while exploring complementary arrangements including the preparation of financing templates for reference by participating banks, with a view to expediting targeted financing solutions.

Meeting Composition

The meeting was attended by representatives from HKMA, HKAB, the Development Bureau, FSTB, the Innovation, Technology and Industry Bureau, Hung Shui Kiu Industry Park Company Limited, and twenty-three (23) participating banks within the Taskforce.

Notes

¹ As at July 2026. ² The Government had injected funding of HK$10 billion into each of three dedicated industry companies: Hong Kong-Shenzhen Innovation and Technology Park Limited, Hung Shui Kiu Industry Park Company Limited, and San Tin Technopole Company Limited. ³ The six member banks of the PPP Financing Workstream are Bank of China (Hong Kong) Limited, BNP Paribas, China Development Bank Hong Kong Branch, DBS Bank (Hong Kong) Limited, the Hongkong and Shanghai Banking Corporation Limited, and Standard Chartered Bank (Hong Kong) Limited.