FintechHK Quarterly News Roundup - Q3 2022

Hong Kong Fintech Week 2022

• Hong Kong Fintech Week (HKFW) 2022 concluded on 4th November, wrapping up a landmark five-day event for Hong Kong fintech, over what has been an eventful week for Hong Kong as the city steps back on the world stage.
• Themed “Pushing Boundaries, Reaping Benefits”, this year’s conference brought together global leaders and renowned sponsors across different verticals, alongside world-leading fintech innovations to explore the future growth of fintech through four key topics – global fintech outlook, fintech in Mainland China and the Guangdong-Hong Kong-Macao Greater Bay Area, the implementation of emerging technologies, and digital assets.
• This flagship event attracted a record high of over 30,000 visitors and over five million views online from over 95 economies, featured over 500 distinguished speakers, over 600 sponsors and exhibitors, as well as attracting more than 30 international delegations.
• Visit the Hong Kong FinTech Week 2022 official website and YouTube channel to revisit highlights and key sessions of the event. The press release is now available here.

Policy Statement on development of Virtual Assets (VA) in Hong Kong issued during HKFW 2022

• Following the announcement shared by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, during HKFW 2022 press conference on 13 October 2022, the Government issued a policy statement on the development of VA in Hong Kong on 31 October 2022, which sets out the Government's policy stance and approach towards developing a vibrant sector and ecosystem for VA in Hong Kong.
• Recognising the increasing acceptance of VA as a vehicle for investment allocation by global investors, be they institutional or individual, the Securities and Futures Commission (SFC) will be conducting a public consultation on how retail investors may be given a suitable degree of access to VA under the new licensing regime.
• Retail investors in other markets have also been given exposure to VA via VA-related products such as Exchange Traded Products. Hong Kong is therefore open to the possibility of having Exchange Traded Funds (“ETFs”) on VA in Hong Kong, and soon the SFC will publish a circular on this, providing the connectivity between VA players and traditional financial institutions, hence promoting the overall growth of the sector in our market.
• The Government and the regulators are exploring the following pilot projects together with the global VA community to explore the technological benefits brought by VA and their further applications in the financial markets.
  • Green bond tokenisation: Tokenising Government Green bond issuance for subscription by institutional investors
  • e-HKD: The potential “backbone” and anchor bridging legal tender and VA, offering price stability and confidence needed to empower more innovations

Policy Address 2022

• To foster fintech development, the Government will release a Hong Kong I&T Development Blueprint this year, which will set out major policies under four broad directions:
  • Promoting the commercialization of research and development (R&D): the government will earmark $10 billion to launch the “Research, Academic and Industry Sectors One‑plus Scheme” (RAISe+ Scheme) in 2023, with the aim of at least 100 research teams in universities becoming potential start‑ups.
  • Promoting the development of the tech industry: with a goal of attracting no fewer than 100 high‑potential or representative I&T enterprises to set up or expand their businesses in Hong Kong in the coming five years, bringing more than $10 billion of investment to Hong Kong and creating thousands of local job opportunities.
  • Pressing ahead with re‑industrialisation: the government will create the post of Commissioner for Industry, and explore the construction of a second Advanced Manufacturing Centre at the Tai Po InnoPark. It will also subsidise the setting up of more smart production lines in Hong Kong under the Re‑industrialisation Funding Scheme, with the target of a four-fold increase in the total number of smart production lines, from about 30 at present to more than 130 in five years’ time.
  • Strengthening infrastructure and facilities: move full steam ahead with the construction of the HSITP and expedite the development of San Tin Technopole in the Northern Metropolis. The expansion works of the Science Park and Cyberport will be completed in phases from 2025 onward, providing 100,000 square metres of additional floor area.
• To attract leading I&T talent around the globe, the government will enhance the TechTAS by lifting the local employment requirement, extending the quota validity period to two years and expanding the coverage to more emerging technology areas.
• To strengthen the city’s position as an international financial center and the largest offshore RMB business center, Hong Kong Exchanges and Clearing Limited (HKEX) will revise the Main Board Listing Rules next year to facilitate the fundraising of advanced technology enterprises that have yet to meet profit and trading record requirements. It is also planning to revitalize GEM to provide small and medium enterprises (SMEs) and start-ups with a more effective fundraising platform. 
• The Commercial Data Interchange will be launched this year to provide a one‑stop platform for enterprises to share operational data, enabling banks to make accurate assessments on the operating condition of enterprises and providing SMEs with a better chance of securing loans, plus many more other use cases

SFST announced a new round of Proof-of-Concept subsidy scheme and training scheme for fintech practitioners

• Commissioned by the Financial Services and the Treasury Bureau and administered by Cyberport, the government has started accepting applications for the second round of its HK$10 million (US$1.3 million) “Proof-of-Concept” cash-subsidy programme for fintech start-ups.
• The first batch of fintech professional qualifications recognised under the Qualifications Framework for banking practitioners was rolled out in September.
• The FSTB, in collaboration with the HKMA and the Hong Kong Institute of Bankers, will launch a Pilot Scheme on a Training Subsidy for Fintech Practitioners aiming to promote the professional development of fintech talents and expand the fintech talent pool in Hong Kong.

InvestHK forms strategic partnership with 10x1000 Tech for Inclusion

• InvestHK announced on 1 Nov its strategic partnership with 10x1000 Tech for Inclusion (“10x1000”), an open and global fintech training platform co-founded by Alipay and International Financial Corporation (a member of the World Bank Group).
• The partners aim to nurture more local talents to accelerate digital transformation, entrepreneurship, and digital economic growth.  The results of the program are expected to enhance talent development and improve the quality of Micro, Small and Medium Enterprises (MSMEs), increase female participation, and promote the digital economy in Hong Kong.
• The strategic partnership with InvestHK is the latest effort by 10x1000 to deepen its collaborations with partners worldwide. For more information, please refer to here.

HKMA Released a Position Paper on e-HKD

• In September 2022, HKMA issued a position paper setting out its policy stance on e-HKD and outlining its next steps.
• HKMA has conducted two rounds of market consultation to examine the prospect of issuing an e-HKD in Hong Kong, looking at technical feasibility and policy. Overall, respondents have been supportive of the initiative and believe it has potential to make payments more effective while supporting the digital economy.
• Taking into account the findings of the study and the feedback received, the HKMA will start paving the way for possible implementation of e-HKD in the future, and consider its potential uses and the necessary legislative amendments in the upcoming quarter.

Unleash Web3 Potential Through Blockchain Technology

• Check out this video to learn how CryptoBLK empowers business to thrive in this fast-moving world with blockchain-led solutions. This Hong Kong startup became a pioneer in the Blockchain/ Distributed Ledger Technology industry in just five-years-time.

Reimaging Traditional Trading and Logistics Industry

• In this video, FreightAmigo shares how it brought new energy into the traditional trading and logistics industry by developing its own digital trading platform.

FintechHK x Insurance Authority: Building a Thriving Insurtech Ecosystem

• In this video, the Insurance Authority shares how it supports the industry as a regulator and facilitator, showcasing practical benefits of the Open API framework with several featured use cases including industry leaders Bank of China (Hong Kong), BOC Life, FWD, China Construction Bank (Asia), ZA Life and ZA Bank.

Webinar Playback

FintechHK webinar: Entering the Hong Kong Fintech Market

• Hong Kong is one of the most dynamic fintech hubs in the world and in Asia. To attract more fintech companies from Asia to Hong Kong, the Government is committed in offering companies a world-class business environment, financial and operational support, and excellent technical infrastructure.
• The webinar invited speakers from Fintech Alliance Philippines and Securities and Exchange Commission to share their experience of the Hong Kong fintech scene and business opportunities for Filipino Fintech companies that are looking to utilize Hong Kong as a scaleup launchpad.

• The 21st GS1 Hong Kong Summit
  • GS1 Hong Kong Summit, one of the most influential industry events in the region, has engaged 10,000+ business leaders across industries over the years.
  • Themed “The Future is Now : Enabling Growth through “IDD” (Innovation, Disruption, Digital Transformation)” this year, it expects 1,500 C-suite executives, entrepreneurs, corporates, SMEs and policymakers joining physically or virtually to explore how businesses of all sizes can digitally transform into future-ready business, as well as the latest business innovations in 2022 and beyond.
  • Visit InvestHK for more event details : https://www.investhk.gov.hk/en/events/21st-gs1-hong-kong-summit.html