Citigroup is set to bolster its wealth management operations in the Greater Bay Area and across Asia, leveraging its base in Hong Kong, as affirmed by its global head of wealth. Despite selling its mainland wealth business to HSBC in October, Citigroup remains committed to Hong Kong and China, emphasising its strategic importance as a hub for serving clients in mainland China. Andy Sieg, global head of wealth at Citigroup, highlighted the region’s significance, with projections estimating US$100 trillion (HK$782 trillion) of wealth creation worldwide over the next decade, with Asia leading the growth trajectory. “Hong Kong is the epicentre…

The Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) unveiled the Prototype Hong Kong Green Fintech Map in collaboration with Cyberport and Invest Hong Kong (InvestHK) This aims to assist corporates and financial firms identify green and sustainable financial technology (Green Fintech) solutions tailored to their business needs. The map is a comprehensive directory of Green Fintech firms operating in Hong Kong, featuring over 50 firms. Their offerings span various sectors, including environmental, social, and governance (ESG) data and analytics, climate risk modelling, green digital finance, and carbon credit trading. The launch occurred during the “Green Fintech: Catalyst for…

The Securities and Futures Commission (SFC) reiterates its regulatory stance regarding  virtual asset trading platforms (VATPs) or more commonly known as crypto exchanges operating in Hong Kong. As of 1 June 2024, VATPs that do not submit licence applications to the SFC by the 29 February 2024 deadline must cease operations in Hong Kong. Under the transitional arrangements, unlicensed virtual asset trading platforms must obtain SFC licences to resume business activities legally. Investors are advised to verify the regulatory status of VATPs on the SFC’s website and are encouraged to trade only on SFC-licensed platforms. VATPs not listed as licensed…

HTX, formerly Huobi Global, has officially withdrawn its application for a license to operate in the Hong Kong cryptocurrency market. The Securities and Futures Commission (SFC) confirmed that HBGL Hong Kong Limited, associated with HTX, retracted its application only three days following its submission on 23 February. This decision marks a significant pivot from HTX’s previously announced intention to expand its presence within the local crypto landscape. The move has sparked widespread speculation within the cryptocurrency community regarding the motivations behind the sudden change in strategy. The company had been anticipated to be among the frontrunners in securing regulatory approval…

At the Hong Kong Green Week – Finance Stream, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority (HKMA), underscored the crucial importance of mobilising climate finance to aid the Asia Pacific region in its transition towards a low-carbon economy. He underlined the necessity of urgent collective action to address climate change, highlighting the significant impact of the region on global emissions and the critical need for sustainable financial strategies to combat this global challenge. Sustainable action is urgently needed, with an estimated requirement of US$66 trillion (HK$516 trillion) of climate investment over the next three decades. As…

The Hong Kong Association of Banks (HKAB) announced that major retail banks in Hong Kong are stepping up their security measures to shield customers from evolving malware scams. Aligned with guidance from the Hong Kong Monetary Authority and the Hong Kong Police Force, these banks will introduce additional anti-malware security measures tailored to their respective customer base and systems starting in late February 2024, according to individual implementation schedules. This proactive strategy leverages insights from combating fraudulent activities in global markets. When malware or suspicious apps are detected on customers’ devices in Hong Kong, the new anti-malware security measures embedded…

Pan-Asian Life Insurance FWD Group and Microsoft have announced an extension of their partnership through a new four-year agreement. This collaboration aims to integrate Microsoft’s latest generative AI innovations into FWD Group’s cloud-first technology approach. Under this agreement, FWD Group will utilise Microsoft Azure OpenAI Service alongside other Microsoft technologies to propel its generative AI projects. The initiative will enhance FWD Group’s private networking, monitoring, security, and advanced AI model capabilities. Ryan Kim, Group Chief Digital Officer of FWD Group, said, “Digital innovation has always been core to FWD’s vision of changing the way people feel about insurance. This collaboration…

A recent Bloomberg Intelligence report reveals that Hong Kong finance and tech professionals enjoy higher salaries than their counterparts in Singapore. The report shows that investment banking analysts in Hong Kong earn 46 percent more, with average annual salaries reaching US$92,149 (HKD$720,659) compared to US$63,305 (HKD$495,082) in Singapore. This salary disparity extends beyond analysts. According to data from recruiting firm Michael Page, associates in Hong Kong earn an average of US$123,000 (HK$961,932) annually, 36 percent more than those in Singapore. Executive directors at investment banks in Hong Kong enjoy a 13 percent higher salary. The wealth-management sector also sees higher…

The Hong Kong Monetary Authority (HKMA) has issued new guidance for Authorised Institutions engaged in digital asset-related activities, mainly focusing on providing custodial services for digital assets. This initiative aims to ensure that digital assets held in custody are protected and the associated risks adequately managed. The guidance outlines expected standards for Authorised Institutions, drawing from international standards and practices, to facilitate operational arrangements that match the nature, features, and risks of the digital assets under custody. This includes assets dependent on cryptography and distributed ledger technologies, excluding limited-purpose digital tokens. Key areas covered in the guidance include governance and…

Pacific Century Group, the holding entity behind FWD, a pan-Asian insurance group, announced that Richard Li Tzar-kai, the company’s founder and chairman will retain a controlling stake. Richard expressed his confidence in the firm’s long-term growth prospects. This statement comes amidst speculation, clarified by Pacific Century, which emphasised its decision not to engage in market rumours, as the South China Morning Post reported. Highlighting FWD’s performance, Pacific Century revealed that the insurer has seen an average annual growth rate exceeding 23 percent in the value of new business over the past decade. This metric reflects the present value of future profits…

In alignment with Hong Kong Green Week, set for 26 February to 2 March, Cyberport, in collaboration with Finoverse and the World Green Organisation, is set to co-host the first Green FinTech Summit. The summit will convene over 500 financial leaders to discuss the integration of Web3 and green technology in advancing fintech, GreenTech, and green finance within the region. Scheduled for 27 February at Cyberport, the summit will feature more than 30 experts from diverse fields including ESG investment, carbon trading, and sustainable blockchain applications. These discussions aim to foster research, collaboration, and sustainable global development. Keynote speakers include…

Citi announced today the appointment of Joy Cheng as Head of Citi Commercial Bank (CCB) for Hong Kong, effective 1st February 2024, succeeding the recently retired Anson Kwok. With over 30 years of experience at Citi, including her recent role as Head of Corporate Banking for Hong Kong, Joy will lead the CCB’s business growth and operations in the region. Reporting to Gunjan Kalra and Aveline San, Joy’s appointment aligns with Citi’s strategy to expand its services for mid-sized corporates in crucial sectors and leverage opportunities in the Greater Bay Area (GBA). “Hong Kong is one of the largest markets…

Hong Kong’s Financial Secretary, Paul Chan Mo-po, highlighted the city’s significant potential to become a critical international center for green technology and finance. In a recent blog post, Chan underscored the success of over 200 high-quality green tech enterprises from Hong Kong, many of which have expanded globally, showcasing the city’s robust entrepreneurial spirit in the green sector. With an investment exceeding HK$800 million in green technology research and development projects, the government is actively fostering innovation in this critical area. The upcoming inaugural “Hong Kong Green Week” aims to catalyse discussions on green finance and technology, seeking to unlock…

The Government announced the appointment of Chan Kin-por and Peter Yan King-shun to the Board of Directors of the Hong Kong Exchanges and Clearing Limited (HKEX), replacing Laura Cha May-lung and Benjamin Hung Pi-cheng. Additionally, Susan Chow Woo Mo-fong has been re-appointed as a board member. These appointments and the re-appointment will span approximately two years, from the conclusion of the 2024 Annual General Meeting (AGM) to the end of the 2026 AGM. Financial Secretary Paul Chan expressed his confidence in the capabilities of the newly appointed and re-appointed board members, highlighting their familiarity with the financial market, leadership in…

UBS has launched Hong Kong’s first investment-grade tokenised warrant, leveraging the Ethereum public blockchain. This product is part of the bank’s UBS Tokenise initiative, aimed at advancing its in-house tokenisation services. The product is a call warrant with Xiaomi Corporation as the underlying stock. The tokenised warrant is also reportedly the first natively issued warrant on a public blockchain that was sold to OSL Digital Securities Limited, a licensed virtual asset platform operator and wholly-owned subsidiary of OSL Group (formerly BC Technology Group). Tokenised warrants are distinguished by enhanced accessibility, efficiency, and transparency. They enable investors to access digital structured…

The banking landscape is expected to witness significant changes in 2024, influenced by technological advancements, regulatory initiatives and shifting consumer preferences. New reports released by the Hong Monetary Authority (HKMA), French consulting firm Capgemini and tech corporation IBM explore the top trends shaping the industry, highlighting the digital transformation sweeping across the sector, the adoption of generative artificial intelligence (AI), the emergence of tokenization and digital assets, and the growing focus on green and sustainable banking practices. These trends are not just limited to Hong Kong but also reflect global developments as banks adapt to meet evolving market demands. Digital…

MUFG Bank, a subsidiary of Mitsubishi UFJ Financial Group, has acquired a 15.55% stake in robo-advisor WealthNavi for approximately 15.65 billion yen (104.15 million), marking a strategic move to bolster its digital financial services. This capital and business alliance aims to leverage MUFG Bank’s extensive customer network and WealthNavi’s expertise in automated investment advice to enhance the financial offerings available to consumers. Under the terms of the agreement, MUFG Bank’s investment not only secures a significant shareholding in WealthNavi but also sees the bank planning to nominate a director to the latter’s board, subject to shareholder approval. This step is…

The Korea Financial Intelligence Unit (KoFIU) announced plans to ramp up the scrutiny of cryptocurrency exchanges operating within the country. Starting this year, exchanges that do not meet stringent regulatory standards will face expulsion from the market, according to The Korea Times. This crackdown is part of a broader effort by financial authorities to safeguard investors and the financial system from the risks associated with unfit virtual asset service provider. By expanding the scope of screening for new entrants into the cryptocurrency market, the authorities aim to prevent the proliferation of entities that could undermine the market’s stability. Since the…

The Hong Kong Monetary Authority (HKMA) has issued a report detailing the implementation of loss-absorbing capacity (LAC) requirements in Hong Kong’s financial sector. The document provides a comprehensive analysis of the steps taken towards establishing a robust framework for LAC, which is essential for financial institutions (FIs) to absorb losses and support recapitalisation in situations of distress. LAC is identified as a key component in ensuring that a failing financial institution can be stabilised and returned to viability without jeopardising financial stability. It functions by allocating losses to shareholders and holders of LAC debt instruments, thereby discouraging risky behavior and…

Hex Trust, an institutional-grade digital asset custodian with licenses in major global financial centers, has recently expanded its advisory board with the addition of Dr. Dimitrios Kavvathas and Marty Jetton. Their appointments are expected to enhance the company’s strategic direction and growth in the digital asset sector. Dr. Kavvathas, with his extensive experience in global financial markets, has a Ph.D. in Economics from the University of Chicago. His career includes over two decades of high-level positions, notably spending 12 years as a Managing Director and Partner at Goldman Sachs in London, before taking on significant roles in Hong Kong. His…