Unlocking Hong Kong’s Potential: A Strategic Hub for Clean Energy and Emerging Industries
Hong Kong is poised to become a critical player in the global commodities market, particularly in materials essential for clean energy and emerging industries. A new report by the Better Hong Kong Foundation highlights the city’s potential to establish itself as a strategic alternative for economies and companies worldwide, reducing dependence on Western markets.
Diversifying the Economy
Developing a commodities market in Hong Kong would create a new growth point for the city’s economy, according to the report. This move would consolidate and enhance Hong Kong’s status as an international center in finance, shipping, and trade, while promoting the internationalization of the yuan and supporting the Belt and Road Initiative.
Industry Needs at the Forefront
The report’s suggestions and strategies are based on industry needs, gathered through nine months of research with commodity-market participants and the China Development Institute in Shenzhen. The foundation, established in 1995 by influential Hong Kong business and community leaders, aims to provide a comprehensive approach to developing the commodity market.
Seizing Opportunities in Clean Energy and Emerging Industries
Hong Kong’s commodities market would help the city “seize the commanding heights” in the development of new-energy and green industries. With geopolitical tensions on the rise, the market would become a strategic choice for different economies and companies to prevent the risks of “broken links” and “cut-offs” in Western markets.
Four Key Strategies
The report recommends that Hong Kong adopt four strategies in its planned commodity market:
- Focus on minerals and metals used in the carbon transition
- Support emerging industries in the city and the Greater Bay Area
- Focus on non-ferrous metals and materials needed for mainland China’s manufacturing industries and the Belt and Road Initiative
- Support trading of top commodities that China imports and exports
Policy Recommendations and Next Steps
Based on these strategies, the report lists 20 policy recommendations to promote the development of a commodity supply-chain ecosystem in the bay area. These include strengthening links with eastern Zhejiang province, Shanghai, and other regions, and seeking support from the central government. The foundation also suggests the creation of a “Commodity Connect” mechanism for trading and settlement, linking the London Metal Exchange and the Qianhai Mercantile Exchange to connect mainland and international commodities markets.
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