China’s ramp-up of belt and road investments plays to Hong Kong’s strengths: HSBC

“The Belt and Road Initiative began with an early emphasis on large overseas infrastructure projects, but has gradually shifted to ‘small and beautiful’ projects”, with greater emphasis on “green development, digitalisation and hi-tech content”, Liu said. Hong Kong stood to benefit from the steady growth of the initiative thanks to its deep ties to mainland China’s economy, she said.

The share of total Chinese overseas direct investments going to the initiative rose to 25 per cent in the first six months of 2025 from an average of 16 per cent in 2021 and 2022, according to HSBC research.

China’s overseas investments were expected to accelerate amid the US-China tariff tensions, which propelled production closer to end consumers to supplement exports, Liu said. Chinese companies’ globalisation strategies would also continue, she added.