Investment opportunities for the Northern Metropolis project

Hong Kong’s ambitious Northern Metropolis has received a shot in the arm with a HK$150 billion (US$19 billion) fund launch to kick-start the high-tech park’s development.

The site is massive, covering some 30,000 hectares, which is about one third of Hong Kong’s total land area and about the size of Philadelphia in the USA, or Edinburgh in Scotland.

And before the ink has dried since the announcement of the plan, more than 60 firms have moved into the first two buildings in the Phase 1 development of the San Tin Technopole, the centrepiece of the entire project. The infrastructure is already well in place: drainage has been laid, internal roads built with slip roads connecting to the main highway, electricity has been connected and buildings are sprouting like stalagmites while construction cranes dot the skyline. The area is a hive of activity.

When completed, the project will create 650,000 jobs and house 2.5 million people.

Naturally, such a project will require money, and Hong Kong has plenty of that. Hong Kong is the world’s top capital market, ranking the top spot for Initial Public Offerings (IPOs) in 2025. A combination of revenue earned from IPOs and bond sales, pushed Hong Kong’s 2025-26 budget to a surplus to some $3 billion (US$383 million). As Hong Kong is the envy of the world for its monetary management, raising the necessary funds for the $224 billion ($28 billion) project should not be difficult.

Normally, surpluses go into the government’s exchange fund, currently standing at $4.1 trillion ($524 billion), which is used to maintain the Hong Kong dollar’s peg to the US dollar. But with such ambitious plans afoot, Financial Secretary Paul Chan Mo-po has proposed taking some $150 billion ($19 billion) from the exchange fund to support the Northern Metropolis. Investment returns from the exchange fund last year topped $300 billion ($38 billion). This, he sees, as an investment, not an expenditure. After all, he said, this is only half of last year’s profits.

In his Budget speech last week Chan announced the setting up of a “Northern Metropolis Urban-Rural Integration Fund” which will entail an initial capital of $200 million ($25.5 million) to boost rural tourism in the area. Hong Kong is rich in heritage, and some 200 villages will benefit from the scheme. Another $1 billion ($128 million) will be earmarked for a heritage conservation fund for revitalzation projects and maintenance of historic buildings.

The government will also inject another $10 billion ($1.27 billion) into an adjacent project known as the Hetao Hong Kong Park, otherwise known as the Hong Kong-Shenzhen Innovation and Technology Park. A dedicated company for this development, set up by the government in 2023 is seeking public-private partnerships to take up its offer to occupy some 1 million square metre gross floor area on 87.7 hectares of land. It is expected this site alone will provide some 52,000 innovation and technology jobs.

Although the metropolis is mainly high-tech, it will also house a university town with accommodation for students and a training hospital, as well as possibly earmarking some land for private hospital development. Applications will soon be open to develop campuses in the Hung Shui Kiu/Ha Tsuen area with an offer of $10 billion ($1.3 billion) in loans to the successful applicants. Tertiary education bonds are likely to be issued to support the construction of the university and its facilities. The universities have the capacity to issue bonds with their substantial financial reserves and profitable self-financing programes. After all it is normal for universities elsewhere to raise capital by the issuance of bonds. The government can provide a guarantee for the bonds, allowing them to receive a credit rating equivalent to government bonds which currently stands at AA+.

Investors can rest assured the Chinese Central Government will do everything in its power to preserve its southern treasure for generations to come with Hong Kong being the pinnacle for the Greater Bay Area.

Mark Pinkstone

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

The move by the Central Government to reprimand the US Consul General in Hong Kong over her interpretation of a recent amendment to National Security Law (NSL) is necessary to correct a misconception that the city is not a safe place to travel.

Last month, Hong Kong’s legislature passed laws empowering the police to demand suspects of a crime to reveal the passwords to their mobile phones and other electronic devices.

But the newly appointed US Consul General Hong Kong Julie Eadeh went a step further and issued a travel advisory warning all Americans that they could be arrested if they failed to release their passwords. She insinuated that Hong Kong is a police state. It is not! In fact, it is one of the safest places in the world to travel.

A government spokesman was quick to respond to erroneous press reports after the legislative motion that under normal circumstances, police officers must have reasonable grounds to suspect that an electronic equipment may contain evidence of an offence endangering national security, and they must apply for a warrant and obtain authorisation from a magistrate before they can search the electronic equipment to obtain relevant criminal evidence in accordance with the warrant. 

Only after being legally authorised to search the equipment can the police require a suspect to provide the password or decryption method of the equipment. Therefore, it is not until legal authorisation to search an electronic equipment has been obtained can the police really require a suspect to provide the password or decryption method of the electronic equipment. 

The spokesman added that there is no case that the police can randomly ask ordinary citizens on the street for their electronic devices (such as their mobile phones) and their password. 

The Berkshire Hathaway Travel Protection agency, which placed Hong Kong 10th as one of the world’s safest places to travel last year, advised travellers to read the US State Department’s travel advisories which currently advises travellers to exercise caution in Hong Kong due to the “arbitrary enforcement of local laws and ongoing restrictions on civil liberties” following the enactment of the National Security Law and the 2024 Safeguarding National Security Ordinance. US citizens are also encouraged to avoid demonstrations, protests and large gathering, as “even peaceful events can escalate and lead to legal consequences.” 

The commissioner of China’s foreign ministry office in Hong Kong, Cui Jianchun, gave Eadeh a slap over the wrist and expressed strong dissatisfaction and firm opposition, urging the US to immediately cease interfering in Hong Kong affairs and China’s internal affairs in any form. 

Of the 70-consular corps in Hong Kong, the US was the only one to purposely misinterpret the amendment to the NSL. It is in the DNA of the US. All other foreign diplomats know exactly what it means because the same proviso applies to their own countries.

Eadeh is a career diplomat having served in Ankara, Doha, Bagdad, Shanghai, Riyadh and Beirut. In Hong Kong she was the consulate’s political director under Gregory May, who has been promoted to US Deputy Chief of Mission in Beijing.

Unlike other consulates in Hong Kong which answer to their embassies in Beijing, the US Consulate General in Hong Kong answers directly to the US State Department run by China hawk and Secretary of State Marco Rubio, who has been quiet on China issues recently due to his distraction in the Middle East.

The US is not in a position to criticise Hong Kong at the moment as it has lost all credibility as a sovereign state. It is a broken country, ostracized by the world’s powers as they scramble to mend the fences dismantled by President Trump and his cronies.

Commissioner Cui will be keeping a watchful eye on Eadeh as she steps her way through Hong Kong, its flooring still holding the shards of broken glass from the 2019-20 riots in which she was complicit. Cui will continue to reprimand her for every indiscretion she makes.