How is Chinachem creating a more sustainable built environment in land-constrained Hong Kong?

Find out how the Hong Kong-based developer is leveraging green finance to meet its decarbonisation targets.

Land-constrained Hong Kong is pursuing a more sustainable approach to urban development. The upcoming Tung Chung East new town extension, for example, will provide much-needed housing for about 184,000 people and include a network of green spaces described as an urban forest¹.

Chinachem Group, one of the city’s leading property developers, is contributing to the sustainable development of Tung Chung East with a new commercial project covering up to 1.3 million square feet (121,000 square metres). The development is expected to comprise offices, retail and a data centre, as well as public spaces, to provide a hub for business and commerce when construction is complete in 2027.

Privately-owned Chinachem has committed to ensuring all its major new projects achieve green building certification and meet the standards enshrined in its sustainable procurement guidelines.²

The Tung Chung project employs an efficient structural design to minimise the materials needed in construction, while the design includes on-site solar panels that will provide up to 6.5% of the building’s energy needs.³ It won silver in the Best New Development category at the MIPIM Asia Awards 2023, which honour the most useful, sustainable and visionary projects in Asia Pacific.⁴

Funding for the development comes from a HK$4.84 billion (US$619 million) five-year green development club loan, on which HSBC was mandated as the Sole Green Structuring Bank (SGSB).

“We are delighted to extend our long-term relationship with Chinachem and contribute to the development of a vibrant new community,” says Sunny Poon, Head of Corporate CRE and Infrastructure at HSBC. “This deal underlines the value of our structuring capabilities in accessing green financing for strategically important projects.”

To borrow or not to borrow, only borrow if you can repay

Today we finance a number of industries that significantly contribute to greenhouse gas emissions. We have a strategy to help our customers to reduce their emissions and to reduce our own. Find out more: https://www.hsbc.com/who-we-are/our-climate-strategy