Hong Kong's Unique Advantages
There are many factors that make Hong Kong ideal for FinTech companies. The city offers a world-class business environment, unmatched financial and operational support, and excellent technical infrastructures to support innovation and business on a global scale.
- In 2015, Hong Kong ranked second in global foreign direct investment (FDI) inflows, second only to the US.
- The total number of companies with parent companies overseas and in Mainland China has reached 7,904 in 2015, with 3,798 of these companies serving as regional headquarters or regional offices.
- Hong Kong is one of the world's most popular start-up hubs, thanks to a business-friendly environment and the government's many start-up support initiatives.
- The city offers easy access to the Pearl River Delta (PRD) Region, with advanced supply chain and logistics platforms.
- Hong Kong boasts the largest level of AUM (assets under management) in Asia, with a diverse and large investor base.
- The city is a business centre that connects Mainland China with global markets, making it ideal for start-up and existing companies to develop and apply FinTech.
- Its location puts companies in proximity to China's financial technology leaders and offers close association to giants like Alibaba, Tencent and Baidu.
- As a well-connected international financial hub in a favourable time zone, Hong Kong is ideal for FinTech businesses to scale globally.
- The city offers an enormous base of highly skilled workers, supported by many well-respected institutions for higher learning.
- Hong Kong boasts HK$2 billion in innovation and technology venture funds from private venture capital organisations.
- The Hong Kong Science and Technology Park Corporation provides an expanding number of workspaces for start-ups. It has earmarked HK$200 million to support start-ups as of 2016 through its corporate venture fund and incubation programmes.
- The government's FinTech Contact Point offers advisory support for all FinTech start-ups—helping with regulatory matters and enabling the Hong Kong Securities and Futures Commission (HKSFC) to stay abreast of current matters related to FinTech.
- The city boasts many spaces, accelerators, incubators and networking events supported by financial institutions and venture capital firms.
- Dedicated FinTech platforms established by the Hong Kong Monetary Authority (HKMA), HKSFC and Office of the Commissioner of Insurance (OCI) help enhance communications between regulators and the FinTech community—keeping all parties up-to-date on regulations, new developments and more.
- The Hong Kong Government embraces a "technology neutrality" principle and investor protection—fostering an environment conducive to innovation.
- Hong Kong boasts a large and growing pool of world-class talent. The Hong Kong University of Science & Technology was ranked 4th in Asia in the 2015-16 QS World University Rankings.
- Hong Kong has two universities in the world's top-50 and five in the top-200, helping to grow the city's skilled labour force and offering research support for businesses.
- Hong Kong's business schools are also world-renowned; the Hong Kong University of Science & Technology's EMBA programme ranks second in the Financial Times EMBA Rankings 2015.
- Hong Kong has strong academic institutions and innovation labs to nurture technological growth, giving FinTech firms access to new technologies that enhance innovation and operational efficiency.
- The Hong Kong Government encourages industry exploration and innovation of blockchain technology—with the aim of transforming the city HK into a blockchain hub. Currently, Hong Kong hosts many blockchain conferences and events.
- Hong Kong has the world's second-fastest Internet speed, with over 92.6Mpbs average peak connection (Akamai Technologies, Q1 2015) and over 83% household broadband penetration (OFCA, Mar 2015).
- Smartphone penetration rate ranks top in Asia at more than 232% (OFCA, April 2015).
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