Hong Kong open to backing universities issuing bonds to fund megaproject campuses

Hong Kong authorities are open to supporting universities in issuing bonds to fund the development of the proposed University Town in the Northern Metropolis, with lawmakers calling for a dedicated approval and credit rating mechanism.Financial Secretary Paul Chan Mo-po told a meeting of the Legislative Council’s Finance Committee on Thursday the issuance of a “tertiary education bond” to support the University Town’s construction would be considered.The University Town, which will include the city’s third medical school, was proposed as part of the 30,000-hectare (74,131-acre) Northern Metropolis megadevelopment close to the border with mainland China.Authorities aim to increase the proposed area for the University Town from 90 hectares to 100 hectares, with the government also set to allocate three sites in Hung Shui Kiu and Ha Tsuen for tertiary institutions to develop campuses.At the Legco committee meeting, lawmaker Andrew Fan Chun-wah called on the government to introduce more diverse funding options for the University Town, including issuing tertiary education bonds to expedite financing and diversify the city’s bond market.Chan replied the government was receptive to various funding channels and harnessing market resources to support the University Town’s development.