Author: Fintech News Hong Kong

The Securities and Futures Commission (SFC) today issued a statement on existing regulations which could be applicable to initial coin offerings (ICOs). Today’s statement explains that depending on the facts and circumstances of an ICO, digital tokens that are offered or sold may be “securities” as defined in the Securities and Futures Ordinance, and accordingly subject to the securities laws of Hong Kong. ICOs typically involve the issuance of digital tokens, created and disseminated using distributed ledger or blockchain technology. Whilst digital tokens offered in typical ICOs are usually characterised as a “virtual commodity”, the SFC has observed that certain ICOs have…

Hong Kong-based Paycelerate is providing a working capital marketplace that directly matches supply and demand, helping businesses in the Asia-Pacific region optimize short-term funding and payment terms. Paycelerate operates discrete marketplaces between corporates (who have excess cash), and suppliers (who have cash needs to be met), to agree deals to accelerate payment of invoices. Small and medium businesses (SMEs) offer discounts to receive early payment of invoices from their corporate buyers, and benefit from inexpensive, straightforward funding. Meanwhile, buyers generate significantly higher returns on their cash than existing bank deposits by paying these discounted invoices early. The marketplaces run using a…

By 2030, artificial intelligence will be “as commonplace in society as Internet-ready devices are today,” according to UBS. In the field, Asia has the potential to become a global leader, the Swiss banking giant claims. In the region, AI could produce economic value between US$1.8 to 3 trillion a year by 2030 in the region, according to UBS CIO’s estimates. In particular, AI is expected to have a significant impact on the industries of financial services, healthcare, manufacturing, retail and transportation – sectors that currently contribute to about two-third of Asia’s GDP. Already, several players in China including Baidu, Alibaba…

TNG Wallet, Hong Kong’s e-wallet, announces its partnership with 7-Eleven Hong Kong to launch 24×7 payment and cash withdrawal services in Hong Kong. Consumers are able to pay for purchases using TNG Wallet at all 7-Eleven stores in Hong Kong and verified TNG Wallet users will be able to withdraw cash from their TNG Wallet accounts thereafter. Combined with TNG’s existing top-up service at all 7-Eleven stores, TNG Wallet now offers financial technology (“FinTech”) services that are available 24 hours a day and 7 days a week, with services that include top-up, cash withdrawal, and payment. This collaboration makes TNG…

Fintech and sustainable, responsible and impact (SRI) products are revolutionizing how financial services are delivered. These two sectors in particular have attracted massive investor interest and are poised to transform the way people invest and transact, according to a new report. The Innovation in Investment report, written by The Economist Intelligence Unit (EIU) and sponsored by Standard Chartered Private Bank, examines how innovation and technological advances are opening up new avenues of investment opportunities for investors, and how they may develop in future. SRI, an investment disciple that considers environmental, social and corporate governance criteria to generate long-term competitive financial…

Hong Kong X Technology Fund has announced its first investment into six rising Hong Kong-based technology companies as part of an accelerator program, along with the launch of its second X-LAB, a co-working space for technology companies, in Jordan.  Several of the investee companies will move into X-LAB. Sponsored by Sino Group, one of Hong Kong’s leading property companies in Hong Kong, the X-LAB will provide more working space for young entrepreneurs in Hong Kong. Mr Nicholas W. Yang, GBS, JP,Secretary for Innovation and Technology of the HKSAR attended the opening ceremony as the officiating guest. Hong Kong X Technology…

Hong Kong start-up reach funding goal in 7 hours! Revolutionising the wearable technology market is the world’s first voice-powered smart ring called ORII. Launced on Kickstarter , the ring turns the hand into a smartphone using cutting-edge bone conduction technology to transmit sound. Users can make calls, send messages, or command a voice assistant, such as Siri or Google Assistant, by simply placing their fingertip to their ear. Founded by four Hong Kong-born university friends, the technology start-up is redefining how users interact with their smartphones, marking a notable shift away from a screen-based world. The wearable technology market forecasts robust growth as consumers seek for…

China is the undisputed global fintech leader with the largest fintech market in the world as measured by total investment, total addressable market, and digital usage, and Beijing, Shanghai and Shenzhen are its top three fintech powerhouses. Shanghai, a global financial center and transport hub, is the most populous city in the world with a population of more than 25 million. In China, the city is a major commercial hub, and a center of higher education with over 30 universities and colleges including the ShanghaiTech University located in the Zhangjiang Hi-Tech Park in Pudong. In recent years, Shanghai has experienced…

While China’s fintech industry had been mostly driven by the “fin” component, the importance of the “tech” component will come to the fore in the future, according to management consulting firm Oliver Wyman. With the ongoing integration of fintech into the regulatory framework, the development of fintech in China has reached an inflexion point. From now, technology will be the key driver of value-chain disruption in an increasingly data-driven industry, claims a new report titled “Fintech in China: hitting the moving target.” This comes at a time when China’s fintech industry is facing new challenges as government regulation begins to…

Austrade and the Commonwealth Bank of Australia have signed a new collaboration agreement to help Australian businesses access the Hong Kong and greater China market, as well as to support Hong Kong businesses coming to Australia. “Australia has a vibrant start-up and emerging technology community underpinned by the Australian Government’s National Innovation and Science Agenda,” said Consul-General Michaela Browning.  “This agreement provides Hong Kong businesses the opportunity to access the latest technologies in the Commonwealth Bank’s Innovation lab and to engage themselves in the Australia market, while Australian companies can tap into Hong Kong’s fast growing start-up ecosystem and access…

China, the undisputed fintech leader, has seen its online lending market grow rapidly since the late 2000s, fueled by the high online penetration rate and the encouragement of the Chinese government, which sees Internet finance as an important vehicle to foster a more inclusive financial system in China. But the growth of online lending has also given rise to many gaping problems including numerous scams. Since 2011, 3,556 platforms have collapsed according to Online Lending House, a service that tracks the sector. In third of the cases, law enforcement agencies closed the platforms or their owners or managers simply disappeared. In…

The Hong Kong Monetary Authority (HKMA) and the Hong Kong Applied Science and Technology Research Institute (ASTRI) jointly held the Fintech Career Accelerator Scheme (FCAS) Induction Day on (27 July 2017), welcoming the interns and marking the official commencement of their training and internships. The HKMA and ASTRI held their first regulatory update and technical workshop respectively on the induction day, introducing the regulatory regimes and other relevant developments in financial and fintech regulations, and providing foundation fintech technical training to the FCAS interns to prepare them for internships. The interns also visited the HKMA Information Centre and learned…

Ten fintech companies have been selected for Accenture’s  12-week mentorship program in the fourth annual FinTech Innovation Lab Asia-Pacific. The startups participating in this year’s Lab have developed a range of innovations leveraging blockchain, machine learning and artificial intelligence to help financial institutions improve efficiencies, increase cyber-security, and provide more user-friendly customer services. Launched by Accenture in Hong Kong in June 2014, the FinTech Innovation Lab Asia-Pacific is a collaboration between Accenture and leading financial institutions. The principal financial institutions are: Bank of America Merrill Lynch, Commonwealth Bank of Australia, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Macquarie Group, Morgan Stanley,…

Located in a special economic zone, Shenzhen is known as the “Silicon Valley of China.” The city ranks first in China in terms of the volume of patent fillings and is also the heart of the Internet of Things manufacturing, according to Deloitte. With full support from the public sector, a large unbanked population, and the lack of financial infrastructure, Shenzhen’s fintech sector has experienced significant growth and the city is now being recognized as one of China’s leading hubs for financial innovation. In light of Shenzhen’s rising fintech sector, we look today at some of the top fintech startups…

Hong Kong offers a fertile ground for fintech startups, thanks to the city’s world-class business environment, unmatched financial and operational support, and excellent technical infrastructures to support innovation and business on a global scale. Notably, Hong Kong’s proximity to Mainland China, the world’s current fintech leader, makes it an ideal place for startups looking for a gateway in and out of China. Already, several foreign ventures have chosen Hong Kong to set up a presence in Asia. Today, we look at some of the most noteworthy fintech ventures in Hong Kong you should be keeping an eye on. Amareos Amareos…

The FinTech Association of Hong Kong was officially launched last night to champion an open, inclusive and diverse FinTech community in Hong Kong. The Association is an independent, not-for-profit, member-driven association that draws its members from across the FinTech and wider financial industry. Hong Kong has a vibrant and growing FinTech community. The Association will help power the further development of Hong Kong as a leading FinTech centre with three main goals: ● Advocate – create the unified voice for the Hong Kong FinTech ecosystem ● Collaborate – bring together the diverse parts of the community ● Educate – learn…

With over a hundred fintech ventures and more than 35 investors and accelerator programs, Hong Kong’s fintech ecosystem is growing at a fast pace. Hong Kong is looking to capitalize on financial technology to keep its leading position as one of the world’s top financial hubs in the world. But unlike other major fintech hubs such as London, New York and Singapore that have positioned themselves as true disruptors, Hong Kong has instead opted for a more collaborative approach. This trend is largely due to the fact that Hong Kong has been dominated to a greater extent than other financial…

“Entrepreneurs in their 20s prioritise impact on community more than the older generation.” “Millennial entrepreneurs in HK prioritise financial considerations and work longer hours than those in the U.S. and Europe.” “Self-starters in HK are more ambitious compared with those with family business background.” Nearly a quarter (23%) of millennial entrepreneurs worldwide say having a positive impact on the community is an important goal, compared with one in ten (13%) entrepreneurs aged 50 or above. The distinction between generations is most marked in the U.S. (29% vs 17%) while the difference is eight percentage points in Asia-Pacific (21% vs 13%),…

China has become the undeniable center of global fintech innovation and adoption, thanks to developments across multiple hubs such as Shanghai, Hangzhou, Beijing and Shenzhen. With a large pool of highly skilled work force and the presence of educational powerhouses, Beijing, Shanghai and Shenzhen have emerged as hubs for financial innovation. These locations are continuously investing to nurture a conducive environment for fintech firms in China. For instance, the Shenzhen province has spent more than US$600 million in 2016 to attract global professionals and academics, according to EY. Today, they host headquarters of a number of foreign and local multinationals…

A new IBM study released on 18 May revealed that a third (33 percent) of almost 3,000 C-suite executive surveyed are using or considering blockchain in their business. According to the study, eight in 10 of those exploring blockchain are investing either in response to financial shifts in their industry or for the opportunity to develop entirely new business models. Titled “Forward Together”, the largest study done to date among C-suite executives seeks to gain their perspective on blockchain. It was based on findings from interviews with C-Suite executives across industries on how they intend to operate, generate revenue, and…