A Paradigm Shift Towards a Green and Sustainable Finance Center

4 Contents Executive Summary 5 1. Introduction 6 2. An Inventory of Hong Kong’s Recent Economic Fluctuations 9 2.1 The Fluctuations in the Economy 10 2.2 The Mixed Business Outlook 13 2.3 Status as an IFC Weakens 15 3. Structural Changes in Hong Kong’s Market 18 3.1 The Volatility in the Financial Market 19 3.2 Structural Changes in the Financial Market 21 3.3 Competition Between Regional Financial Centers 25 4. Paradigm Shift and the Shared Belief 29 4.1 Historical Pathway to an IFC 30 4.2 The Paradigm Shift and New Shared Belief 32 4.2.1 Global Consensus in Green Development 32 4.2.2 The Rise of Green Finance 33 4.2.3 From Shared Belief to Paradigm Shift 35 5. Conclusion 36 References 38