Amid a complex and ever-changing socioeconomic environment and geopolitical uncertainties, Hong Kong should actively explore new markets beyond traditional regions such as Europe and the United States. In this regard, emerging markets in countries and regions along the Belt and Road (B&R) present various opportunities for Hong Kong.

Held under the theme “Building a Connected, Innovative and Green Belt and Road,” this month’s Belt and Road Summit was pivotal. It brought together officials and business leaders from B&R countries and regions, serving as an important business platform to promote cooperation. The forum not only offered an excellent opportunity for businesses and investors to exchange ideas but also provided crucial insights into different emerging markets and their potential.

While some B&R countries are still under development, others, including Saudi Arabia and the United Arab Emirates, are looking to diversify their economies and promote sustainability. This creates enormous room for developing green infrastructure, green energy, green transport and green finance in B&R countries.

With a growing economy and increasing consumption and purchasing power, demand for various goods and services is strong in these countries and regions. Given the sluggish performance of traditional markets, exploring new markets along the Belt and Road will offer a new way out.

Nevertheless, businesses are naturally concerned about the risk of investing in new markets. To encourage and support export trade through the provision of credit insurance protection for Hong Kong exporters, the Hong Kong Export Credit Insurance Corporation (ECIC) should step up efforts to support Hong Kong businesses by expanding its insurance coverage and increasing its credit limits at a time when the business community is proactively exploring new opportunities. This would help address the pain points businesses experience when developing domestic and emerging markets.

In the meantime, the ECIC should consider establishing partnerships with additional organizations, including banks, financial institutions, and insurance companies in the Mainland, ASEAN and Middle East markets. This will help offer Hong Kong exporters a more comprehensive credit risk assessment of buyers in these regions. The quota of free credit risk checks on buyers from emerging B&R markets such as the Middle East should also be increased.

Expanding into new markets is never easy. As such, concerted efforts between the Government and the business community are not just important, but urgent, to facilitate the process and ensure success in exploring new opportunities along the Belt and Road.

Jeffrey Lam

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