Visitors pass by a booth of the Hong Kong Digital Asset Exchange on the first day of Fintech Week 2022 in Hong Kong on Oct 31, 2022. (PETER PARKS / AFP)
Now is “the perfect time” to explore the fintech business in Hong Kong after compulsory quarantine measures were eased in September and Chief Executive John Lee Ka-chiu announced many new supporting measures in his Policy Address, Secretary for Commerce and Economic Development Algernon Yau Ying-wah said Tuesday.
The Hong Kong Special Administrative Region is one of the most competitive economies in the world, serving as an important gateway that connects the Chinese mainland with global markets, Yau said in his keynote speech on the second day of FinTech Week.
“We have our own overriding advantages and enjoy abundant opportunities under our country’s 14th Five-Year Plan (2021-25), the (Guangdong-Hong Kong-Macao) Greater Bay Area development, and the Belt and Road Initiative,” he said.
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Hong Kong also ranked as the world’s freest economy in the Fraser Institute’s “Economic Freedom of the World: 2022 Annual Report”, a position it has retained every year since the report’s inception in 1996.
As the chief executive (John Lee Ka-chiu) announced last month in his maiden Policy Address, we are adopting a more proactive approach in ‘competing for enterprises and talents’. We will put in place new institutional setups and implement an array of new initiatives targeted at attracting enterprises, investment and talents
Algernon Yau Ying-wah, Commerce Secretary of the HKSAR government
“As the chief executive (John Lee Ka-chiu) announced last month in his maiden Policy Address, we are adopting a more proactive approach in ‘competing for enterprises and talents’. We will put in place new institutional setups and implement an array of new initiatives targeted at attracting enterprises, investment and talents,” Yau said.
His remarks came one day after Financial Secretary Paul Chan Mo-po announced at the opening session of FinTech Week that the digital transformation of the financial sector is a central priority of the HKSAR government.
Describing Hong Kong as a thriving hub for fintech companies, including fintech startups, Yau said there are already more than 800 fintech firms active in a wide range of areas, including virtual banks, insurers, wealth-tech, credit-tech, regulatory-tech, cybersecurity, and fintech solutions for enterprises.
“We are happy to see a steady increase in startup numbers to record high levels, including fintech startups of course, as well as more people engaging in the fintech startup sector in Hong Kong,” Yau said.
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This clearly demonstrates the attractiveness of Hong Kong’s competitive landscape, with easy access to an international and regional market, a simple tax system and low tax rate, and vast business opportunities in the Greater Bay Area, he added.
Jin Liqun, president of the Asian Infrastructure Investment Bank, said Hong Kong’s high standards and rule of law have long equipped the city with the ability to attract ambitious, intelligent and creative talent.
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As a connector linking the Chinese mainland, Asia and the rest of the world, Hong Kong can bring together talent and capital, and play a key role in promoting regional economic development as well as financial stability, Jin added.