The Hong Kong Special Administrative Region plans to serve as a financial springboard for the Chinese mainland’s electric vehicle makers, as the world’s largest EV market eyes overseas expansion through the city's international networks.
Industry leaders made the remarks at Wednesday's International Automotive and Supply Chain (Hong Kong) Summit Forum.
Hong Kong Chief Executive John Lee Ka-chiu said, “Hong Kong will leverage its international capital markets and professional financial services to provide financing and overseas promotion services for mainland new energy vehicle enterprises”.
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Lee noted that electric vehicles accounted for over 11 percent of total private vehicles as of November last year.
“Hong Kong has over 100,000 EVs, about seven times more than five years ago,” he said, adding that EVs now represent about 70 percent of newly registered private vehicles, up from 20 percent in 2022.
The city leader outlined HK$750 million ($96 million) in subsidies for electric taxis and buses in his latest policy address. “We will also launch a new HK$300 million scheme to subsidize the private sector’s installation of rapid charging facilities,” he said, noting the initiative would support 160,000 electric vehicles.
“Hong Kong will continue to leverage the advantages of ‘one country, two systems’ to serve national development in the new energy vehicle industry and promote international cooperation in industrial and supply chains,” he said.
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Wingco Lo Kam-wing, president of the Chinese Manufacturers’ Association of Hong Kong, noted that mainland automotive and supply chain brands are expanding into overseas markets, accelerating their global supply chain deployment across research, design, production, services, and supporting facilities.
Hong Kong’s mature infrastructure in finance, trade, professional services, supply chain management, ESG development, intellectual property, and testing certification, coupled with its position as the world’s largest offshore renminbi hub, positions the city as a “super value-added platform” for the mainland’s new energy vehicle supply chain ambitions, Lo said.
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Lo said Hong Kong will host an auto show in June. “The exhibition will bring together mainland automotive and supply chain enterprises with international auto companies,” Lo said.
“This platform will not only demonstrate Chinese automotive brands’ capabilities, making new energy vehicles a new card for ‘Made in China’, but also highlight Hong Kong’s prowess as an international supply chain management hub.”
Fu Bingfeng, executive vice-president and secretary-general of the China Association of Automobile Manufacturers, said that the mainland’s auto industry is banking on Hong Kong’s financial prowess to fuel its global expansion.
He said, “Hong Kong will serve as a crucial beachhead for mainland automotive exports, functioning as a two-way gateway for mainland enterprises’ inbound and outbound development”.
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He noted that Chinese auto exports are expected to exceed 6 million units in 2024, up from 4.91 million units last year.
“November saw a milestone of producing 10 million new energy vehicles this year, with annual production expected to reach 12 million units, accounting for over 60 percent of global production,” Fu added.
The forum, themed “Let’s create and win”, drew participants from various sectors, including Hong Kong and mainland officials, financial professionals, entrepreneurs from the automotive and supply chain sector, innovation and technology scholars, and representatives from commercial chambers.
