Mainland Chinese companies are set to play a pivotal role in the development of Hong Kong’s Northern Metropolis by sharing financial risks and aligning the project with national strategic goals, according to real estate and political advisers.

On Monday, the blueprint’s first pilot area in Hung Shui Kiu was awarded to HSK New Development, a consortium led by five mainland giants alongside local developer Sino Land. The group pledged an investment of HK$16.8 billion (US$2.14 billion) to develop 10.5 hectares (25.9 acres) of sites at a low land premium of HK$1.03 billion.

HSK New Development outbid the only competitor, Henderson Land Development, with the mainland contingent comprising four state-backed developers—China Overseas Land & Investment, China Merchants Land, China Resources Land (Overseas), and CTG Investment—along with e-commerce and technology leader JD.com.

Jeffrey Lam Kin-fung, chairman of the Hung Shui Kiu Industry Park Company, a government entity driving the district’s development, highlighted the benefits of pooling expertise across real estate, construction, and hospitality sectors. “Each of the six companies has a special role to play, which will contribute to the holistic development of the Northern Metropolis,” he said.

While analysts link the involvement of mainland firms to national priorities and their technical expertise, real estate advisers recommend that future tenders allow greater flexibility and longer bidding periods to foster more competition.