Published: December 14 2023
Hungary is positioning itself as a regional financial center and a gateway for Chinese financial institutions to enter the European market. Finance Minister Mihály Varga expressed this goal during a meeting with the CEO of the Multilateral Cooperation Center for Development Finance (MCDF).
Hungary's Cooperation with MCDF
The cooperation between Hungary and MCDF strengthens bilateral partnerships between Hungary and Asian countries, aligning with the government's policy of expanding its ties to the East. Varga highlighted the success of Chinese financial institutions such as Bank of China, China Construction Bank, and China Development Bank, which have found success in Hungary.
Hungary as a Target for Chinese Investors
Hungary has become the top target for Chinese investors in Central and Eastern Europe, with Chinese investments reaching $8 billion in the country last year. To further diversify government financing, Hungary has issued green panda bonds and plans to launch its next Chinese bond issue program in 2024.
Infrastructure Development and AIIB
MCDF, with its connection to the Asian Infrastructure Investment Bank (AIIB), aims to provide financial resources for infrastructure development preparation. By fostering ties with MCDF and participating in AIIB initiatives, Hungary aims to attract Chinese institution investments and solidify its position as a financial hub for Chinese businesses in Europe.
Questions & Answers
What is the goal of Hungary in terms of becoming a financial center for Chinese institutions in Europe? Hungary aims to become a regional financial centre and a "bridgehead" for Chinese financial institutions that want to enter Europe's financial market.
Which Chinese financial institutions have found success in Hungary? The local operations of Bank of China, China Construction Bank, and China Development Bank have found success in Hungary.
How much Chinese investment did Hungary receive last year? Chinese investments in Hungary reached 8 billion dollars last year, making Hungary the "number one" target for Chinese investors in Central and Eastern Europe.
What is the plan of Hungary regarding government financing? Hungary has diversified its government financing with green panda bond issues. It also plans to launch its next Chinese bond issue programme in 2024.
What is the role of the Multilateral Cooperation Center for Development Finance (MCDF) in Hungary's cooperation with China? The MCDF, which has ties to the Asian Infrastructure Investment Bank (AIIB), aims to provide financial resources for the preparation of infrastructure developments, further strengthening Hungary's bilateral partnerships with countries in Asia.
