Hong Kong tops green finance ranking as SEA firms seek cheaper funding

The city ranked ahead of Singapore, Shanghai, London, and New York.

Hong Kong remained the top-ranked international green finance centre as more Southeast Asian companies increasingly look overseas for cheaper funding.

It ranked ahead of Singapore, Shanghai, London, and New York, according to a joint study by the Hong Kong Financial Research Institute of Bank of China, the MSCI Institute, and HKU Jockey Club Enterprise Sustainability Global Research Institute.

The report surveyed 117 organisations, including 56 from Southeast Asia.

About 42% of Southeast Asian respondents said they had financed or invested in sustainability-related activities overseas, more than double the 18% recorded in 2025—another 44% plan to do so.

Meanwhile, funding costs have become their main consideration when choosing where to undertake sustainable financing, cited by 91% of respondents. Market size had been the leading factor last year.

“Hong Kong, as a super-connector, is well-positioned to connect SEA’s growing green demand with the GBA’s green technologies,” said Zhang Jianguang, general manager of the Hong Kong Financial Research Institute of Bank of China.

The report said the city’s financial institutions could respond by expanding sustainable finance offerings, such as sustainability-linked loans, green loans, and sustainability-linked bonds.

It cited Bank of China (Hong Kong) Ltd., which reported a 33.5% year-on-year increase in its balance of green and sustainability-related loans in 2025.

However, Hong Kong may also need to make financing cheaper, with the cost of sustainability-related financial products cited as the biggest barrier for 52% of Southeast Asian respondents.

Respondents also called for more direct financial support from the city, with 73% favouring tailored funding or grant schemes and 63% backing green infrastructure financing.