HSBC has on Monday announced the launch of a dedicated credit facility of up to $4 billion in mainland China, designed to help its companies in the clean energy and low-carbon sectors scale internationally including in ASEAN and support decarbonization efforts across the value chain.
The Sustainability and Transition Credit Facility will offer financing to China businesses across a wide range of sectors, including clean power, electrification of transport, data centers, and artificial intelligence, with a focus on those expanding internationally, HSBC said in a statement.
The initiative reflects the bank’s focus on supporting clients to transition and enabling innovation, growth, and opportunity.
According to the statement, ASEAN remains one of the world’s largest recipients of foreign direct investment (FDI), with more than 60 percent of regional inflows directed to Singapore.
As a leading investment hub, Singapore is expected to play a central role in deploying the USD4 billion credit facility across ASEAN.
HSBC noted that Singapore and China also maintain deep and longstanding economic ties, built over decades and predating the formal establishment of diplomatic relations 35 years ago.
China was Singapore’s top investment destination in 2024, receiving S$224 billion ($175 billion), while FDI flows in the other direction have also strengthened.
In 2025, China ranked among the top five source economies for Singapore’s FDI inflows, reflecting continued growth in cross-border investment activity.
China accounts for about 47 percent of global cleantech exports, and around two-thirds of global solar and battery exports.
Meanwhile, EV sales are expected to surpass 26 million globally in 2026, and electricity use from global data centers is projected to roughly double from about 485 TWh in 2025 to 945 TWh by 2030.
This comes as 91 percent of new wind and solar projects commissioned in 2024 were cheaper than the cheapest available fossil fuel alternative globally.
HSBC also highlighted that ASEAN stands to benefit from increased availability of Chinese technologies.
It noted the accessibility of China’s clean-energy supply chains is widely recognized as making a transition to renewables the lowest-cost option, rather than a premium alternative, supporting these high-growth industries.
This is especially important across ASEAN: at the recent 48th ASEAN Summit in the Philippines, the region’s leaders reiterated their commitment to accelerating the development of the ASEAN Power Grid and a “more integrated, secure, and sustainable energy future.
It is noted that for Singapore, reaching their ‘net zero by 2050’ ambition will be dependent on access to renewable energy from neighboring ASEAN countries via shared infrastructure such as the ASEAN Power Grid.
ASEAN’s electricity demand is expected to rise by 41 percent by 2030 and without grid planning or innovative climate tech solutions, the region risks power shortages, higher costs, and greater fossil dependence8.
As businesses in China look to expand internationally to meet demand, this facility aims to help bring clean technologies and solutions to market more efficiently, contributing to decarbonization efforts across the globe, said the statement.
HSBC will extend credit limits for eligible businesses, streamline credit approvals, and develop tailored financial solutions to meet individual business needs.
“We are seeing strong interest from leading Chinese clean energy businesses to expand into ASEAN through Singapore,
“This new funding solution broadens the sustainable finance options available in Singapore and supports the City-State’s ambition to mobilize capital for climate action across the region,” said Gilbert Ng, Head of Banking, Corporate and Institutional Banking, HSBC Singapore.
Natalie Blyth, Global Head of Sustainable Finance and Transition, HSBC said China is home to some of the world’s most dynamic low-carbon businesses.
She opined that these businesses are setting new benchmarks in high-end manufacturing while playing a vital role in transforming transition ecosystems。
“As they scale internationally, they need financial partners with the global reach and expertise to support them,
“This facility is designed to provide exactly that – and no bank is better placed than HSBC to help clients find, access and navigate growth opportunities across global ecosystems,” she added.
HSBC said the bank is also expanding its support for local businesses as they progress their transition plans, combining financing with technical expertise and practical execution support through a range of tools and collaborations.
Most recently, HSBC collaborated with Founders Factory to pilot the HSBC Industrial Innovation Program in Singapore.
The program connects HSBC corporate clients with global climate technology innovators, providing a structured pathway to identify, pilot, and adopt solutions that address operational sustainability challenges.
Singapore was selected as a pilot market due to its strong appetite for new technology, its focus on energy resilience, and the momentum following the launch of HSBC Innovation Banking.
The initiative underscores HSBC’s ecosystem-led approach, bringing together corporates, innovators and investors through its global network to help accelerate progress from ideas to implementation, and from implementation to financing and scale.
Business leaders, investors look to AI amid volatility – HSBC Survey