Northern Metropolis Financial Advisory Taskforce holds its third meeting

Convening of the Third Taskforce Meeting

On Tue, 10 Nov, the Northern Metropolis Financial Advisory Taskforce (the "Taskforce"), a joint initiative established by the Hong Kong Monetary Authority (""HKMA"") and The Hong Kong Association of Banks (""HKAB""), convened its third meeting. In attendance were representatives from the HKMA, the HKAB, the Development Bureau, the Education Bureau (""EDB""), the Financial Services and the Treasury Bureau, the Innovation, Technology and Industry Bureau, together with 25 participating banks to the Taskforce.

Northern Metropolis University Town – Development Update and Financing Discussion

At the meeting, the EDB provided a briefing on the latest developments pertaining to the Northern Metropolis University Town (""NMUT""), encompassing the strategic positioning of three constituent university towns — namely San Tin University Town, Hung Shui Kiu University Town, and Ta Kwu Ling University Town — as well as progress in campus area development and associated financial arrangements. Participants engaged in deliberations on viable financing structures for the NMUT Area, including loan facilities and public-private partnership models. The participating banks affirmed their commitment to furnishing appropriate financial services to underpin the synergistic advancement of the NMUT and its adjacent industry parks and projects.

Proposed Amendment to Banking (Capital) Rules

In a bid to fortify banking sector financing support for Northern Metropolis (""NM"") initiatives, the HKMA tabled a proposal to amend the Banking (Capital) Rules so as to designate certain government-related entities — comprising 11 post-secondary institutions and three park companies — as Domestic Public Sector Entities. This regulatory adjustment is intended to reduce banks' capital charges, facilitate such entities in securing bank financing, and thereby expedite the implementation of NM projects. The proposed amendments are anticipated to be tabled before the Legislative Council during the first quarter of 2027, with a view to their coming into force no later than the second quarter of that year.

Establishment and Composition of the Taskforce

The Taskforce was jointly constituted by the HKMA and the HKAB in April 2026 for the purpose of enhancing communication and collaboration between the banking sector and the Government of the Hong Kong Special Administrative Region ("HKSAR") and other relevant stakeholders, with a view to exploring proactive financing arrangements in support of Northern Metropolis development. The Taskforce comprises representatives from the HKMA, the HKAB, and 25 banks possessing substantial 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 participate as observers to the proceedings.