Hong Kong Exchanges and Clearing Limited (HKEX) announced the appointment of Johnson Chui as Managing Director, Head of Global Issuer Services. He takes over from Christina Bao, Co-Head of Sales and Marketing, who is departing HKEX after eight years to pursue other opportunities. Chui will assume his new role on 2 September 2024 and will report jointly to HKEX Co-Heads of Markets, Wilfred Yiu and Glenda So. Chui will lead HKEX’s Global Issuer Services teams across Hong Kong, Mainland China, London, and Singapore, driving the group’s efforts to further diversify and expand its listed issuer base. Prior to joining HKEX,…

KakaoPay Insurance, a digital non-life insurance provider in South Korea, has seen more than 1.5 million users sign up for its overseas travel insurance within a year of its launch. Founded in 2022, KakaoPay Insurance has introduced a range of products, including financial safety, mobile phone, driver, and infant insurance. KakaoPay Insurance utilises KakaoTalk, a widely used messaging app, to digitise the insurance process. The company has streamlined services from enrollment to claims, contributing to its growth, with an average monthly increase of 30.7%. Notably, its mobile phone insurance reached one million users within six months, and its driver insurance…

In Hong Kong’s dynamic labor market, staying abreast of regulatory changes is crucial for employers. One such significant regulation is the ‘418 Rule’, which plays a pivotal role in hiring practices. This article delves into the essentials of the ‘418 Rule,’ its recent adjustments, and the implications of the 5% employer payroll contribution, offering practical guidance for employers navigating these requirements. Background on the ‘418 Rule’ The ‘418 Rule,’ officially known as the Employment Ordinance Section 418, has been a cornerstone of Hong Kong’s employment regulations for many years. This rule stipulates the conditions under which employers must adhere to…

The linkage between the Hong Kong Monetary Authority’s (HKMA) Commercial Data Interchange (CDI) and the Hong Kong Government’s Consented Data Exchange Gateway (CDEG) is now fully operational. This follows a successful trial run by pilot banks, with the CDI-CDEG linkage, also known as “CR@CDI,” having been established in late December 2023. The linkage is now open to all CDI participating banks, with promising growth in utilisation rates. Launched by the HKMA, CDI is a consent-based financial data infrastructure designed to enhance data sharing by enabling financial institutions to retrieve enterprises’ commercial data, particularly from SMEs, from both public and private…

The Hong Kong Monetary Authority (HKMA) and The Hong Kong Association of Banks (HKAB) have announced the formation of a joint taskforce on SME Lending. The initiative aims to address ongoing challenges faced by SMEs in securing bank financing amidst an uncertain economic environment. Eddie Yue, Chief Executive of the HKMA, highlighted that while Hong Kong’s economy has been recovering, many SMEs still struggle with financial difficulties. In response, the HKMA has implemented measures to support these businesses, including the nine initiatives launched in March 2024. These initiatives, which include provisions against early repayment demands and adjustments to credit limits,…

Taiwan’s National Development Council (NDC) will introduce a new digital nomad scheme. This allows remote workers from overseas to stay up to six months while continuing their professional activities remotely, NDC Minister Paul Liu said on July 18, 2024. This initiative aims to attract global talent and enhance Taiwan’s competitive edge as other Asian countries introduce similar visa schemes. Currently, digital nomads enter Taiwan either visa-free or with a tourist visa, which permits a stay of up to three months, Liu said. However, these visa holders are not permitted to work during this time. The proposed digital nomad visa scheme…

Concerns are mounting over whether 11 crypto exchanges that initially received provisional licenses will successfully obtain full licenses in Hong Kong, according to Bloomberg. Among the 11 exchanges seeking full licenses are major players like Crypto.com and Bullish, along with HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin, and Matrixport HK. While Crypto.com declined to comment, the other exchanges did not respond to inquiries from Bloomberg. According to sources familiar with the matter, the Securities and Futures Commission (SFC) uncovered issues during on-site inspections of the “deemed-to-be-licensed” platforms. These inspections, conducted since the exchanges gained their provisional status in…

The Hong Kong Monetary Authority (HKMA) has released new guidelines for authorised institutions regarding the use of generative artificial intelligence (Gen AI) in customer-facing applications, emphasizing consumer protection. This update builds upon the 2019 principles on Big Data Analytics and Artificial Intelligence (BDAI), focusing on governance, fairness, transparency, and data privacy. As interest in Gen AI grows within the banking sector, particularly for applications such as chatbots and personalised services, the HKMA stresses that these technologies could have significant consumer protection implications. While current adoption is in its early stages, primarily improving operational efficiency, the potential for broader use in…

Over the past two decades, large technology firms (bigtechs) have disrupted the traditional financial markets in China, leveraging vast user bases and technological capabilities to offer more competitive and accessible financial services. Though the development of digital finance platforms have the potential to enhance financial inclusion and promote innovation, they also pose significant risks, including threats to financial stability, competition, systemic integrity, and consumer protection, a new paper by Christine Meng Lu Wang of the Chinese University of Hong Kong (CUHK) and Douglas W. Arner of the University of Hong Kong says. The paper, delves into the evolution of platform-based…

Crypto exchange tokens have emerged as a significant innovation in the cryptocurrency sector, providing centralized crypto exchange platforms with a way to raise funds. However, these tokens and schemes also come with significant risks and challenges, particularly concerning market manipulation and the financial implications of buyback pledges, a new paper by the Bank for International Settlements (BIS) says. The paper, released on July 25, examines the role of crypto exchange tokens and their broader impact on the crypto market. It analyzes the state of the sector, focusing on the primary characteristics of these tokens, their promises, benefits and the challenges…

Andreessen Horowitz, a venture capital firm from the U.S., is planning to establish its first Asian office in Japan, sources informed Nikkei Asia. Though still in its early stages, the decision to expand into Japan has been discussed multiple times with the firm’s limited partners, according to insiders. The upcoming Tokyo office aims to enhance cooperation with existing Japanese partners and bolster future fundraising initiatives. Despite Andreessen Horowitz’s limited investment history in Japan, the country is becoming an increasingly important market for the firm. As part of its broader strategy, the company may look into investment prospects within the nation.…

For Hong Kong’s virtual banks, profitability remains elusive as they struggle to turn a profit, with none of the city’s eight virtual banks having achieved profitability yet, despite being nearly half a decade in operations. Despite this, these banks are making steady strides by refining their strategies and exploring new revenue streams, according to a new report by the Hong Kong Monetary Authority (HKMA). The report, released on August 6th 2024, provides a review of the eight virtual banks in Hong Kong, examining their operations, impact on the banking system, and progress towards meeting policy objectives. It also assesses market…

Tevau, a blockchain payment solution provider, has formed a strategic partnership with Jumio, a company specialising in AI-driven identity verification and compliance solutions. This collaboration aims to streamline the onboarding process for Tevau’s global users while ensuring adherence to anti-money laundering (AML) regulations. Tevau is focused on developing a next-generation payment infrastructure, offering blockchain-powered cards for the daily use of digital assets. By integrating Jumio’s identity verification technology, Tevau seeks to provide a swift and secure onboarding process, reducing the risk of fraud and other illicit activities. The company plans to introduce both physical and virtual cards, which will convert…

Tech provider OneDegree Global has stepped up to support the Hong Kong Monetary Authority’s (HKMA) new Generative AI Sandbox, contributing its AI Red Team solutions. Launched in collaboration with Cyberport, the sandbox aims to facilitate the safe and responsible development of AI applications in the financial sector. OneDegree’s cybersecurity arm, Cymetrics, plays a crucial role in this effort. According to Alex Leung, co-founder of OneDegree Global, their AI Red Team solutions are designed to identify vulnerabilities and risks related to security, privacy, and bias, which are becoming increasingly significant as AI technologies advance. Through Cymetrics’ automated testing platform, Cymetrics Vulcan,…

The Hong Kong Monetary Authority (HKMA) and digital technology hub Cyberport have launched a new Generative Artificial Intelligence (Gen AI) Sandbox, announced during the FiNETech2 event. FiNETech2, co-hosted by the HKMA, Cyberport, and the Fintech Association of Hong Kong, focused on the growing role of artificial intelligence in the financial industry. The event brought together over 300 professionals from the banking, securities, insurance, and technology sectors to explore innovative AI applications in areas such as risk management, anti-fraud measures, customer service, and process improvement. The Gen AI Sandbox aims to facilitate collaboration between financial institutions and AI solution providers, allowing…

Chinese tech giant Tencent has fully divested its 14% stake in British challenger bank Tide in a sale that was completed in April, as reported by The Telegraph. Tide, founded in 2015, specializes in providing business accounts and financial services to small and medium-sized enterprises (SMEs) across the UK, India, and Germany. The company, chaired by Sir Donald Brydon, has attracted significant investment from Apax Partners and Japan’s SBI Group. While the buyer of Tencent’s stake remains undisclosed, Tide earlier facilitated a secondary share sale, allowing early investors to cash out. Tencent, known for its WeChat app, remains a major…

PayMe by HSBC has launched its first UnionPay virtual card, enabling its 3.2 million users in Hong Kong to make payments worldwide. This move significantly expands PayMe’s acceptance network to over 34 million merchants across 46 markets, including mainland China. As more Hong Kongers travel to mainland China and overseas, the new HSBC PayMe UnionPay card makes it easier for them to pay across these regions. Starting from 8 August, PayMe users can make in-store payments globally by scanning the UnionPay QR code at participating merchants or by displaying their UnionPay QR code via the PayMe app. Payments made in…

Hong Kong’s fintech sector is positioning itself for substantial growth in the Greater Bay Area (GBA), capitalising on new opportunities created by the region’s cross-border investment initiatives. Lareina Wang, recently appointed as the first woman to chair the Fintech Association of Hong Kong (FTAHK), highlighted the accelerated developments within the GBA and the increased engagement with initiatives like Wealth Management Connect. According to the South China Morning Post, FTAHK is set to deepen its collaboration with Shenzhen, recognised as a key technological hub on the mainland. Wang, who also leads digital and innovation efforts at DBS Bank Hong Kong, mentioned…

Birthday is undoubtedly one of the most-loved holidays for kids of all ages, and it is not surprising. After all, this event is about the child’s new year, new achievements, new expectations, and new presents, of course. All parents know this and want this day to be perfect and truly memorable. While kids count the days until they become one year older and write their wish lists, moms and dads do their best to organize an ideal birthday party. You will most certainly agree that this is not an easy task in our bustling world. Well, there is an excellent…

Thredd, a global payments processor, has successfully launched LianLian Global’s virtual card programme in the APAC market. A cross-border payments company based in China, LianLian Global specialises in delivering seamless cross-border funds settlement services with instant payouts. LianLian Global has chosen Thredd to power its Yueda virtual card product, which serves customers across industries such as e-commerce, international B2B trade, and travel. This partnership enhances the management of international operations with the speed, security, and simplicity of global fund transfers via card payment rails. Thredd has announced the successful launch and outlined plans for geographic expansion with LianLian Global over…