HKMC and CICC Forge Partnership to Boost Infrastructure Financing

The Hong Kong Mortgage Corporation Limited (HKMC) and China International Capital Corporation Limited (CICC) have signed a Memorandum of Understanding (MoU) in Hong Kong to enhance cooperation in infrastructure financing and securitisation. This strategic partnership aims to strengthen Hong Kong’s position as a leading infrastructure financing hub, according to the Hong Kong Monetary Authority.

Enhanced Collaboration in Infrastructure Financing

The MoU outlines the collaborative efforts of both parties to explore capital market opportunities related to infrastructure assets. This includes expanding the investor base and tapping into renminbi opportunities for infrastructure loan securitisation. The partnership is expected to facilitate infrastructure investment and financing flows, thereby consolidating Hong Kong’s pivotal role in this sector.

Mr. Colin Pou, Executive Director and CEO of the HKMC, highlighted the growth of HKMC’s Infrastructure Financing and Securitisation (IFS) platform. He noted that the collaboration with CICC is poised to elevate their business to new heights, further advancing Hong Kong’s status as a premier infrastructure financing hub.

CICC’s Global Financial Engagement

Mr. Chen Liang, Chairman of the Board of Directors and Chairman of the Management Committee at CICC, expressed optimism about the partnership. With a long history of engagement in international financial markets, CICC aims to integrate a global perspective with insights into the Chinese market. This collaboration is seen as a significant opportunity to enhance China’s role in global finance and expand influence among international investors.

HKMC’s Role in Infrastructure Financing

Since its inception in 1997, the HKMC, wholly owned by the Hong Kong SAR Government, has been instrumental in promoting banking stability and development of the local debt market. The HKMC launched its Infrastructure Financing and Securitisation business in 2019, aiming to bridge market gaps and efficiently channel capital into infrastructure projects. The issuance of Infrastructure Loan Backed Securities (ILBS) in recent years has been a crucial step in establishing Hong Kong as a global infrastructure financing hub.

About CICC

Founded in 1995, CICC has played a pivotal role in China’s economic reform and development. With a vision to become a leading global investment banking institution, CICC leverages its extensive network and cross-border capabilities to provide first-class financial services, helping clients achieve strategic development goals.

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