Hong Kong is set to benefit from China’s Belt and Road Initiative, focusing on green development and digital transformation. With its expertise in green finance and yuan hub status, the city is positioned to play a larger role in private sector-led projects across 150 member countries. Hong Kong’s stablecoin ordinance could support yuan internationalization and align with the belt and road plan’s investments in emerging markets.
Chinese overseas direct investments to the initiative have risen to 25% in the first half of 2025. Amid US-China tariff tensions, Chinese investments are expected to increase, with a focus on production closer to end consumers and globalization strategies. Asean and the Middle East are standout regions for Chinese investments, with opportunities emerging in the digital economy and oil independence fields.
As China accelerates green transitions at home and in belt and road countries, Hong Kong can leverage its green finance advantages. The belt and road strategy aids yuan internationalization, with Hong Kong as the world’s largest offshore yuan hub. Digital asset initiatives in Hong Kong could innovate trade settlements, boosting the use of the yuan.
Beijing may promote its central bank digital currency, e-CNY, for overseas use after launching it domestically in phases. Stablecoins could play a crucial role in volatile markets, with interest from state-owned enterprises in exploring adoption. Hong Kong’s regulatory groundwork on stablecoins and e-CNY pilots positions the city as a bridgehead for mainland China’s opening up. 1. The United Nations reported a record high number of civilian casualties in Afghanistan in the first half of 2021, with over 5,000 people killed or injured. The increase was attributed to a surge in violence as foreign troops withdraw from the country.
2. The Tokyo Olympics officially began with the opening ceremony on July 23, 2021. The event, delayed by a year due to the pandemic, featured a scaled-back ceremony with fewer spectators and strict COVID-19 protocols in place.
3. The CDC announced that vaccinated individuals should wear masks indoors in areas with high COVID-19 transmission rates. The updated guidance came as the Delta variant continues to spread rapidly across the United States, particularly in areas with low vaccination rates.
Read more at Yahoo Finance: China’s ramp-up of belt and road investments plays to Hong Kong’s strengths: HSBC