InvestHK has helped 59 fintech companies establish or expand their presence in Hong Kong during the first eight months of 2024. This represents a 44% increase compared to the same period last year. These firms, representing 12 economies, including Mainland China, the US, France, Singapore, Canada, and the UK. This highlight the Hong Kong government’s continued efforts to strengthen its financial services through fintech investment and expertise. King Leung, InvestHK’s Global Head of Financial Services, Fintech & Sustainability, described the influx of fintech firms as beneficial for Hong Kong, bringing both investment and job opportunities and expanding the city’s fintech talent…

Hong Kong’s Securities and Futures Commission (SFC) is expediting the license approval process specifically for deemed-to-be-licensed virtual asset trading platforms (VATPs). Announced during Hong Kong Fintech Week 2024, Dr. Eric Yip, the SFC’s Executive Director of Intermediaries, highlighted the commission’s initiatives aimed at balancing fintech growth with investor safeguards. The SFC aims to grant the first batch of formal licenses to these deemed-to-be-licensed VATPs by the end of this year. The regulator will leverage existing regulatory tools, including risk-based on-site inspections and direct engagement with applicants’ senior management. To further support the growth of licensed VATPs, the SFC is establishing…

Hong Kong’s digital bank, ZA Bank, has begun testing a virtual asset trading service in a regulatory sandbox. The service aims to provide eligible Hong Kong retail investors with a secure and regulated platform to trade virtual assets. This move comes as interest in cryptocurrencies grows, with the global market capitalization exceeding US$2 trillion and a recent study showing 75% of Hong Kong investors are interested in trading them. Following the successful completion of this pilot, ZA Bank intends to prepare for the official launch of the service through the ZA Bank app. Ronald Iu, CEO of ZA Bank, said,…

The Hong Kong Monetary Authority (HKMA) is broadening its efforts in the digital currency space by partnering with both the Banco Central do Brasil (BCB) and the Bank of Thailand (BOT) on separate cross-border tokenisation projects. These collaborations aim to test how central bank digital currencies (CBDCs) and other tokenised assets can enhance international transactions and support financial innovation. With Brazil, HKMA will link its Ensemble Sandbox with BCB’s Drex platform to explore payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement use cases in areas like trade finance and carbon credits. This partnership builds on a 2018 cooperation agreement between HKMA and…

Hong Kong Monetary Authority (HKMA) debuted Fintech Connect, its first cross-sectoral sourcing platform, during Hong Kong Fintech Week 2024. The platform aims to connect financial institutions with fintech solution providers to foster collaboration and innovation. This includes Qianhai-based fintech providers to strengthen partnerships in the Greater Bay Area. HKMA also rolled out Project Ensemble to enhance asset tokenisation in Hong Kong through its Ensemble Sandbox, supporting use cases across digital bonds, money market funds, CBDCs, and real-world assets. The project completed six tokenisation use cases across four main themes, with a report on these expected in 2025. International collaborations with…

HSBC and Ant International have completed HKD-denominated cross-bank test transactions using blockchain technology under the Hong Kong Monetary Authority’s (HKMA) Ensemble Sandbox. This is the first successful cross-bank transaction within the Sandbox’s Liquidity Management theme. Ant International’s Whale platform enabled these transactions by linking HSBC and Hang Seng Bank’s networks to allow 24/7 real-time cross-bank transfers. The platform, described as a “next-generation treasury management solution,” uses blockchain, advanced encryption, and AI to increase efficiency and transparency in fund movements, streamlining corporate treasury processes and reducing working capital needs. The Sandbox is part of Project Ensemble, an HKMA initiative focused on…

Hong Kong’s ZA Bank announced that it has introduced a business banking referral programme. Existing personal banking users can invite companies to open a ZA Bank Business account online and earn cash rewards for successful referrals. From now until 10 November 2024, users can receive HKD 288 for each company they refer, with no limit on the number of referrals. To qualify for the reward, referees must open an account using the provided invitation code. Each referee will receive three rate-up coupons, enabling them to access preferential savings rates. If a referee maintains a savings balance of HKD 3,000,000 for…

One of the things that most conspiracy theorists get wrong is the idea that some secret societies or agencies spy on the general population daily. They’re not! Not because they aren’t interested in the information about you, but because you’re giving them all they need yourself. You’re posting about your day on social media, saving your devices for easier access, and even giving them your fingerprint and retina scans to unlock the device a few seconds quicker. Is all of this really necessary? Maybe! Is it safe? Probably not! So, in this era of cybersecurity uncertainty, here are five things…

The Hong Kong Monetary Authority (HKMA) has officially launched the IADS Developer Platform in partnership with the Hong Kong Science and Technology Parks Corporation (HKSTP). This platform facilitates collaboration between banks and technology firms, allowing them to develop data-driven banking products and services using secure, customer-consented data. The platform is part of the Interbank Account Data Sharing (IADS) initiative, which was introduced to establish a framework for the secure sharing of bank account information between banks. The programme has established rules and standards that govern this process, ensuring secure and efficient data-sharing. The initiative, which includes 28 participating banks, enables…

OneDegree Group, a cybersecurity and insurance technology company, has rebranded as AIFT. This aligns with its focus on artificial intelligence (AI) and expanding presence in markets such as the UAE, Singapore, Malaysia, Vietnam, Hong Kong, Taiwan, and South Korea. Founded in 2016 as AI Financial Technology, the company initially used the trading name of its insurance arm, OneDegree. The new AIFT branding marks its shift towards AI-driven security and emerging trends like AI, Web 3.0, and future technologies. AIFT’s businesses include Cymetrics, which offers AI-powered cybersecurity solutions; IXT, providing insurtech services to improve insurer performance; MAMORI.AI, a risk intelligence platform…

Forbes China has released its annual selection of the top fintech companies in China, highlighting the nation’s most successful, innovative, and fastest-growing ventures in 2024. The 2024 Forbes China Top 50 Most Influential Fintech Companies recognizes fintech stakeholders who have made remarkable strides in fintech, while fostering collaboration and exchange within the industry. In addition to the Top 50 Most Influential Fintech Companies list, the section features four subcategories: Top 10 Fintech Leaders, Top 10 Fintech Service Providers, Top 10 Fintech ESG Practice Companies, and Top 10 Most Promising Fintech Companies. Today, we take a closer look at the ventures…

Nearly 30% of Hong Kong’s 7.5 million population were using digital banks by the end of 2023, reflecting growing trust and familiarity with these platforms. A recent survey by the Hong Kong Association of Banks (HKAB) shows that over 80% of individuals and 92% of small and medium enterprises (SMEs) are now familiar with digital banks and their services, signaling a notable rise in awareness. The survey also highlights strong confidence in digital bank security, with over 97% of individuals and 99% of SMEs satisfied with the measures in place. Contributing to this trust are steps such as the renaming…

Thunes, a global payment network, has introduced a new QR code payment solution that allows travelers to use their home country’s mobile wallets, neo-banks, and mobile-enabled banks to pay for goods and services in China. This eliminates the need for travelers to download local Chinese payment apps or carry cash. The service connects to major Chinese payment platforms like e-CNY, Alipay, and WeChat Pay, as well as QR code payment systems operated by the Digital Currency Institute (DCI) and NetsUnion Clearing Corporation (NUCC). Travelers can simply scan a merchant’s QR code with their own banking app to complete a purchase.…

The Hong Kong Monetary Authority (HKMA) has launched its Sustainable Finance Action Agenda. This outlines the regulator’s plan to promote sustainable development in Hong Kong and the region. The agenda emphasizes net-zero targets, transparency, sustainable investing, and inclusivity. Banks are expected to strive for net-zero emissions in their operations by 2030 and in financed emissions by 2050. From 2030, banks will also be required to submit robust, actionable, and up-to-date Paris-aligned transition plans on a “comply or explain” basis. To support this, the HKMA plans to issue guidance, including a new Supervisory Policy Manual by the end of 2024, focusing…

The Hong Kong Monetary Authority (HKMA) announced the creation of CMU OmniClear Limited, a subsidiary that will manage the Central Moneymarkets Unit (CMU). This move aims to commercialise the CMU, allowing it to expand its services and pursue new business opportunities with its own governance structure and commercial culture. While CMU OmniClear will operate the system, the HKMA will retain ownership and oversight of the CMU, including policy, legal relationships with CMU participants, and strategic decisions. This announcement coincided with the signing of a Memorandum of Understanding (MOU) between CMU OmniClear and SIX, a Swiss financial infrastructure provider. This partnership…

Wise, a global online money transfer service, has reportedly become the first non-bank financial institution to gain access to Zengin, Japan’s domestic payment network. This approval is the first step, and Wise is currently working on fully connecting to Zengin. Once completed, Wise will be able to process payments in under 20 seconds. This development will allow Wise to offer faster and more affordable cross-border payments to and from Japan. Wise’s fee structure averages 0.62%, offering a relatively low-cost option for cross-border payments. Previously, access to Zengin was limited to local banks. However, a recent review by Zengin-Net’s Board opened…

Hong Kong’s SME Financing Guarantee Scheme will now offer a principal moratorium of up to 12 months to both existing and new borrowers. This change, along with extended loan guarantee periods, aims to provide relief for small and medium-sized enterprises (SMEs) facing economic headwinds. The maximum guarantee period for the 80% guarantee product has been increased to ten years, while the 90% guarantee product now extends to eight years. Additionally, new loans under both products will have the option for partial principal repayment. These measures are intended to help businesses navigate economic restructuring and maintain stability. HKMC Insurance Limited will…

The Chief Executive of Hong Kong has appointed Dr. Kelvin Wong Tin-yau as the next Chairman of the Securities and Futures Commission (SFC). His three-year term will begin on 20 October 2024, and end on 19 October 2027. Dr. Wong brings significant financial experience to the role, having previously served as a Non-Executive Director of the SFC and a member of the Listing Committee of the Stock Exchange of Hong Kong Limited. He currently chairs the Accounting and Financial Reporting Council (AFRC), a position he will retain until 31 December 2024, ensuring a smooth transition into his new role at…

The ninth edition of the Hong Kong Fintech Week (HKFTW), themed “Illuminating New Pathways in Fintech”, will take place from October 28 to November 01, 2024. This flagship event is expected to draw over 30,000 attendees from more than 100 economies and will feature an array of industry leaders all gathered to address key trends shaping the future of fintech, including artificial intelligence (AI), sustainable finance, and tokenization. Organized by the Financial Services and the Treasury Bureau (FSTB) and InvestHK, in collaboration with the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC), and the Insurance Authority (IA),…

In today’s fast-paced technological landscape, sticking with legacy systems can leave financial institutions lagging behind. With the rapid evolution of payment methods and regulations, banks must stay ahead of the curve or risk being left out of the game. The necessity for modernisation is driven by several key factors, including the migration to ISO 20022, the rise of Open Banking and the introduction of Central Bank Digital Currencies (CBDCs). Additionally, financial institutions must adapt and differentiate in a crowded market by designing and delivering a superior customer experience. Keeping pace with changing market dynamics and accelerating time to market for…