Paul Chan outlines three-tier financing for Northern Metropolis
SingTao · 1 SOURCESabout 3 hours ago6 MIN
Summary
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu (許正宇) said after leading representatives from asset management, private equity and insurance on a visit to the Northern Metropolis this week that the development needs a three-layer financing approach: projects must be affordable to start, supported by long-term capital and attractive to outside investors. He described that framework as public money going first, government credit support, and then market capital stepping in. Hui set out a package that includes public works funding, bond issuance, transfers from the Exchange Fund and multiple land and partnership models aimed at drawing in private developers and institutional investors. He said the visit was only a starting point and that matching capital with projects and execution would be the real test
Key Points
- As of July, the Legislative Council Finance Committee had approved more than HK$185 billion for Northern Metropolis-related public works, with another roughly HK$23 billion to be submitted in the second half of the year
- This year’s Budget injected HK$10 billion each into the Hong Kong-Shenzhen Innovation and Technology Park, Hung Shui Kiu Industrial Park and San Tin Technopole park companies
- The government also reserved HK$10 billion in loans to support construction of the Hung Shui Kiu university town, adding to early-stage public backing
- For longer-term funding, the borrowing ceiling under the Government Bond Programme was raised from HK$500 billion to HK$900 billion, with annual issuance of about HK$160 billion to HK$220 billion planned for five years from 2026/27
- Hui said the Northern Link would use the “rail plus property” model, while broader Northern Metropolis development would use area development, in-situ land exchange, an “actual-value premium” pilot and dual-envelope tenders
Why It Matters
The financing blueprint shows the government is trying to reduce early uncertainty for one of Hong Kong’s largest long-term development projects while avoiding sole reliance on annual fiscal resources. For local investors, banks, insurers and developers, it also points to a pipeline of infrastructure and real-asset opportunities tied directly to the Northern Metropolis build-out