Spurred by the surging interest in sustainability practices, this joint report by HKTDC and ACCA delivers a comprehensive analysis of China's sustainable investment landscape. The report examines the current developmental status, challenges, and emerging trends within this field. Utilising data from questionnaire surveys and expert interviews conducted with both mainland Chinese companies and foreigninvested enterprises – including those with operations in the Belt and Road regions and beyond – and incorporating insights from Hong Kong investment consultants, the report presents valuable strategies for those engaged in inbound or outbound investments.

Additionally, the report underscores Hong Kong's distinctive role as a global superconnector, one vital in facilitating mainland China's cooperative efforts with its overseas partners, while also promoting sustainable practices within mainland companies. Ultimately, the findings and recommendations from this report provide crucial insights for those concerned with fostering sustainable practices, while also acknowledging China's role as one of the key global players in the sustainable investment field.

Hong Kong: A key facilitator of sustainable development

The report was compiled after the two organisations concluded their survey of the mediumterm sustainability objectives of 283 Chinese companies. Ultimately, the research programme, which also included indepth interviews with key industry representatives, aimed to evaluate the progress made by Chinabased businesses as they align themselves with the Central Government's environmental priorities and explore the possibilities offered by green financing.

Healthy sustainable business practices

Another key research finding was that the vast majority of survey participants are prioritising meeting the government's policy objectives in the environmental impact space, especially with regard to substantially reducing their carbon emissions.

Many companies also highlighted other benefits of adopting greener business practices, including enhanced access to green finance and establishing positive brand values on an international basis.

Barriers to sustainable investment

Despite the overwhelmingly upbeat sentiment with regard to adopting and implementing green protocols, many research respondents also reported ongoing challenges. These challenges were seen as often slowing the rate at which agreed measures could be fully actioned. Chief among these concerns were cost pressures – cited by 82% of respondents – something aggravated by the lingering perception that any return on investment from enhanced sustainability practices may not be evident in the short term.

While many respondents were enthusiastic about exploring green financing, there was also uncertainty over how best to access these channels. Regardless of this, some 70% of respondents agreed that they were considering using a green financing channel to meet their future needs.

Opportunities in green financing

The awareness of green financing options in China is still relatively low, with some 47%56% of respondents indicating a lack of familiarity with many of the available options. Some 71% of respondents, however, maintained that they were willing to make wider use of green financing channels, including green loans and green bonds, while reducing their reliance on traditional financing options.

Respondents and interviewees for this research report were drawn from ACCA’s member community in China, which comprises finance professionals across a variety of key sectors, all working at the forefront of the country’s dynamic business landscape.

Please click the picture for the full report.