Hong Kong Financial Institutions Report: 91% of surveyed institutions are optimistic about the prospects for financial development in the Asia-Pacific region.

On April 17th, the research center under the Hong Kong Institute of Finance published a report titled "Seizing the Green Transformation: Opportunities and Evolution of Transformation Finance". The research results show that the financial market is cautiously optimistic about the prospects of transformation finance development, with 74% of surveyed institutions predicting that the global transformation finance market will remain stable or grow in the next three years, with the Asia-Pacific region being the most optimistic at 91%. The report outlines the current development of global transformation finance, discusses the importance of multi-stakeholder cooperation and best practices in international markets to prevent greenwashing and maintain transparency. The questionnaire survey and in-depth interviews conducted by the research center cover stakeholders from different sectors around the world, including financial institutions and multilateral organizations, aiming to analyze the current status, emerging trends, and future development direction of the global transformation finance ecosystem in detail. The report shows that transformation finance is gaining momentum, with 60% of surveyed institutions indicating that they are already involved in or exploring transformation finance. Among the various financial instruments, stocks and fund investments, as well as bond instruments, are the most commonly used financing tools for transformation finance projects. As the market matures, it is expected that the financing tools for transformation finance will become more specialized. Surveyed institutions also pointed out that cooperation models, including blended finance, can increase the risk-return profile of transformation projects and help attract private capital. The report put forward several recommendations, including maintaining high levels of supervision and policy clarity, deepening regional cooperation, etc., to promote the establishment of a vibrant transformation finance ecosystem in Hong Kong. Fiona Yuen-Nok, the Chief Executive Officer of the Hong Kong Institute of Finance and Executive Director of the Research Center, stated that through dialogues, cross-border cooperation, and continuous innovation, Hong Kong can further strengthen its leading position as a sustainable finance hub and promote long-term goals of climate resilience and sustainable economic development. The research findings of the report provide practical insights to enhance Hong Kong's existing strengths in green and sustainable development.