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SINGAPORE – For Hong Kong’s fintech ecosystem to continue to grow, the city needs more measures in the areas of funding, talent and regulation, according to a senior Chinese city official.
Compared to other technologies, fintech is the equivalent of a new industrial revolution and can potentially be used as a lever to further boost Hong Kong’s position as a global financial center, Christopher Hui, secretary for financial services and treasury, said Monday.
“For me, there are three key elements for this (fintech) ecosystem to grow,” he told CNBC’s “Street Signs Asia” during Hong Kong FinTech Week.
“First of all, it’s about money. Second, it’s about talent, and third, it’s about regulation,” Hui said. “So on these three fronts, we are actually looking at what steps we need to push for our fintech ecosystem to grow even further.”
Hong Kong launched a $ 15.5 million salary subsidy plan in July to encourage financial sector companies to hire 1,000 fintech professionals over the next 12 months, the South China Morning Post reported. In return, the government will subsidize the salary of a new full-time employee with 10,000 Hong Kong dollars ($ 1,290) each month for one year, according to the newspaper.
The city’s monetary authority has also issued eight licenses for virtual banks, allowing them to provide retail banking services through the Internet or other electronic channels.
The government is also trying to be a mediator for the city’s financial services companies and financial technology startups to accelerate the adoption of relevant applications, according to Hui. On the governance side, he told CNBC that regulation must be developed in a way that addresses risk and facilitates market development.
“Generally speaking, you can see that the fintech ecosystem in Hong Kong is gaining ground,” he said, adding that it is happening in a context where the coronavirus pandemic has accelerated people’s desire and willingness to adopt technologies. financial
Cash is used very rarely in China, one of the world’s largest fintech markets and home to some of the largest fintech companies. One of them is Ant Group, which runs the massive digital payment service Alipay and is an affiliate of the tech giant Alibaba.
Ant is set for a double listing in Hong Kong and Shanghai this week. In fact, the company closed its institutional book creation process in Hong Kong early due to strong demand for its initial public offering.
Hui said Ant’s listing, as well as that of other startups in the new economy, demonstrates Hong Kong’s strength as an international financial center and its ability to tap capital from Chinese and international investors.
