Hong Kong to become new member of Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) today (March 23) announced that Hong Kong will become a new member upon deposit of the first installment of capital subscription with the bank.
The Financial Secretary, Mr Paul Chan, welcomed AIIB's announcement. "Hong Kong is the international financial centre in Asia, with the unique advantage of 'one country, two systems', a well developed, robust and liquid financial market, as well as an abundance of top professionals with global vision and experience. Hong Kong's professional services and financial services sectors can contribute to the success of the AIIB. Hong Kong's participation in the AIIB can also create new opportunities for the relevant sectors, and can further reinforce our position as a premier international financial centre. I look forward to early funding approval by the Finance Committee of the Legislative Council, to enable Hong Kong to subscribe in a timely manner for the capital stock of the AIIB and become a member of the Bank," he said.
The AIIB is a Multinational Development Bank designed to provide financial support for infrastructure development and regional connectivity in Asia. Its missions are to foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors. It also aims at encouraging private investment in projects, enterprises and activities contributing to economic development in the region.
At end-2016, the AIIB's Board of Directors advised that Hong Kong might apply to join the AIIB with a subscription of 7 651 of its shares, of which 1 530 shall be paid-in shares (amounting to about $1.2 billion, payable over five years) and 6 121 shall be callable shares. The AIIB announced today that its Board of Governors, the bank's highest decision-making body, has approved the above terms for Hong Kong's membership.
The Government briefed the Panel on Financial Affairs of the Legislative Council on March 16 on the relevant details of the membership application. The Panel is supportive of the Government's plan to seek funding approval from the Finance Committee (FC) in the second quarter of 2017. Once FC's approval is obtained and the first installment paid, Hong Kong will formally become a new member of the AIIB.
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