1. The Belt and Road Initiative: Opportunities and Challenges
NICHOLAS KWAN 關家明
DIRECTOR OF RESEARCH 研究總監

2. The Belt and Road
China’s Re-globalisation Initiative
Source: HKTDC

3. Key Points Open, inclusive, mutually beneficial
Base on but not limited to the old silk roads
Fully utilize market mechanism, follow international
common practices
Five connections: policy, facility, trade, finance, people
Source:<推動共建絲綢之路經濟帶和21世紀海上絲綢之路的願景和行動>

4. Global De-Globalisation
Cross border bank lending (US$ trn) 40 35 30 25 20 15 10 5
Source: BIS

5. Global De-Globalisation
World Exports (% of world GDP) 30 25 20 15 10 5
1870
1913
1950
1973
Sources: WTO, HKTDC 5

6. New Trade Regimes
Regional, Plural, Multilateral
Source: Google

7. New Financial Architecture

8. New Economic Balance
Source: Google

9. New World (Dis)Order
Source: Google

10. Hong Kong’s Unique Roles in BRI
Promote international participation
Facilitate the use of market forces
Manage cross-border risks

11. Key Contributing Sectors
Logistics
International
finance
Legal
arbitration
Infrastructure
services
Trade and
commerce
Cross border investment

12. Logistics Free port (goods, capital, information)
Independent tariff area Foreign economic agreements
Aviation 65 countries (34
BRI)
Aviation income 30 (11)
Tax 32 (10)
Visa free 152 (42)
Free trade 6
Investment protection 17 (2)

13. Infrastructure Services
Airport (Shanghai, Hangzhou, Zhuhai)
Rail (Beijing, Shenzhen, Hangzhou, Sweden, UK, Australia)
Port (26 countries)
Power (China, India, Taiwan, Indonesia, Australia)
Telecom (Austria,
Indonesia, Italy
Sri Lanka, Vietnam, Sweden, Ireland, Denmark, UK)

14. International Finance
World 1st IPO centre
World 1st offshore RMB centre
World 5th forex trading centre
World 7th bank centre
Asia 2nd asset management centre
Asia 2nd private
equity centre
Issue and manage HK dollar HKD freely convertible, no exchange control Fiscal autonomy, independent tax system Autonomy to manage and use public reserves

15. Cross-border Investment
Outward direct investment (end-2015 stock)
Country/area
US$ billion US
5,983
Germany
1,813 UK
1,538
Hong Kong
1,486
France
1,314
Japan
1,227
Switzerland
1,138
Canada
1,078
Netherlands
1,074
Chinese mainland
1,010
World
25,045
Source：UNTACD 2016 World Investment Report

16. Regional Trade and Commerce
Regional HQs and offices (3800)
Foreign consulates and rep offices (122)
Foreign residents (500,000)
Foreign business visitors (7 mn) Overseas commercial offices (60+)
HK Business Association members (11,000)

17. Legal and Arbitration
A major international arbitration centre A member of NY Convention
An independent judiciary system

18. New Balance
Beyond New Normal

19. Thank You!
Visit us at