Earlier this week, the Hong Kong Monetary Authority (HKMA) issued a press release on key measures that the HKMA is adopting to support and promote sustainable and green finance in Hong Kong (https://www.hkma.gov.hk/eng/key-information/press-releases/2019/20190507-4.shtml)

In particular, as an asset owner and manager of the Exchange Fund, HKMA is placing emphasis on responsible investment, including incorporating ESG factors in HKMA’s credit risk analysis on bonds and to further grow the Exchange Fund’s green bond portfolio, through direct investment or investment in green bond funds.

HKMA is also requiring external managers of the Hong Kong equity portfolios to comply with the Principles of Responsible Ownership promulgated by the Securities and Futures Commission in 2016, and intends to participate in ESG-themed public equities investments through external managers in passive or active mandates targeting ESG benchmark index.

According to recent news, HKMA may soon be the second central bank to sign up to the Principles for Responsible Investment (UNPRI) (the first being Dutch central bank).