HK a dynamic fintech hub

October 27, 2024

Fintech ecosystem:

Invest Hong Kong’s Global Head of Financial Services, Fintech & Sustainability King Leung says the department assisted 59 fintech companies in setting up or expanding their business in the city in the first eight months of 2024, helping to grow Hong Kong’s reservoir of fintech expertise.

Ideal choice:

Partners Group Head of Private Wealth APAC and Hong Kong Office Henry Chui highlights that Hong Kong is the largest wealth centre in the Asia-Pacific and that setting up office in Hong Kong was crucial for the company.

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Voiceover:

Supporting the Government’s strategy of promoting fintech development, Invest Hong Kong actively assists enterprises in the sector in setting up or expanding their business in Hong Kong.

In the first eight months of this year, the department gave assistance to 59 fintech companies from 12 economies including the Mainland, the US, France, Singapore, Canada and the UK. This represented a 44% increase in the number of companies compared to the same period in 2023.

Invest Hong Kong’s Global Head of Financial Services, Fintech & Sustainability King Leung described this as great news for Hong Kong, with the firms bringing investment and job opportunities to the city, in addition to helping to grow its reservoir of fintech expertise. 

Invest Hong Kong Global Head of Financial Services, Fintech & Sustainability King Leung:

For example, there is a highly capable fintech firm that has set up (its office) in Hong Kong. It is a digital bank.

They realised that after all these years of development in technology, now they possess some of the leading technologies in the world. So, they thought this was a good opportunity for them to, basically, export their technology capabilities by setting up a fintech unit in Hong Kong, in which they plan to invest over US$150 million.

Voiceover:

Mr Leung highlighted that Hong Kong’s advanced economic system and financial markets make it a desirable place for fintech businesses to operate.

Invest Hong Kong Global Head of Financial Services, Fintech & Sustainability King Leung:

When we look at Hong Kong’s position as an international financial centre, we have literally thousands of banks, insurance companies, asset managers or wealth managers, securities firms, payment firms, and so on. 

These thousands of companies present enormous business opportunities for the solution providers in fintech that are really targeting these firms as their potential clients. So, that makes Hong Kong such an attractive place because of the fertile soil as a B2B, or what we call business-to-business, fintech market.

Voiceover:

One Swiss-based global private equity firm with US$150 billion in assets under management opted to set up its new office in Hong Kong, with a view to further expanding its business in the Asia-Pacific region.

Partners Group Head of Private Wealth APAC and Hong Kong Office Henry Chui:

There are three reasons why we decided to open up an office in Hong Kong.

Hong Kong has 2,700 family offices. There are also over 12,000 ultra-high-net-worth individuals. So, it makes Hong Kong the largest wealth centre in the Asia-Pacific.

Being in Hong Kong is absolutely critical for us to develop (our) private wealth business here. That is point number one.

Point number two is that Hong Kong continues to be a global financial centre. And Hong Kong has global talent here that is on par with all the financial centres globally. And also the infrastructure here is unparalleled. 

We believe that this is also a great place to develop and expand our talent pool for the business.

And number three is that Hong Kong is at the doorstep of China, and so it is an excellent springboard for us to develop our business and expand into the Greater China region.

Voiceover:

Invest Hong Kong believes that as an international financial centre, Hong Kong offers a robust regulatory environment, along with abundant business opportunities and financial support, making it the ideal location for the development of fintech and digital finance.

Invest Hong Kong Global Head of Financial Services, Fintech & Sustainability King Leung:

First, Hong Kong being now the second largest cross-boundary wealth management centre in the world, that has actually attracted quite a lot of wealthtech companies to Hong Kong.

Secondly, because of the highly embracive and welcoming policy in promoting digital assets, which also includes Web3 and blockchain, that essentially creates another major attraction for companies in this space.

As a matter of fact, the digital assets and blockchain segments have been the fastest growing segments (for) Invest Hong Kong over the past two years.

The third thing I would like to highlight is that Hong Kong is also positioned as a leading international green finance and greentech hub.

As a result, a sub-segment of fintech called green fintech is something that is also very much a major focus.

Voiceover:

A range of events focused on fintech development in Hong Kong will be held throughout this month. One of these is Hong Kong FinTech Week 2024, which will be held from October 28 to November 1, and is anticipated to attract approximately 30,000 attendees from more than 100 economies.

The Government is committed to promoting fintech development in Hong Kong, to enhance the competitiveness of its financial services industry and accelerate digitalisation.

To support the Government’s strategy, Invest Hong Kong actively assists enterprises in the sector in setting up or expanding their business in Hong Kong.

In the first eight months of this year, the department gave assistance to 59 fintech companies from 12 economies, including the Mainland, the US, France, Singapore, Canada and the UK. This represented a 44% increase in the number of companies compared to the same period in 2023.

Tech base

Invest Hong Kong’s Global Head of Financial Services, Fintech & Sustainability King Leung described this as great news for Hong Kong, with the firms bringing investment and job opportunities to the city, in addition to helping to grow its reservoir of fintech expertise.

He noted that a leading digital banking firm based in Shenzhen, has set up its technology company headquarters in Hong Kong and plans to invest US$150 million.

Mr Leung highlighted that as an international financial centre, there are thousands of companies covering different sectors in Hong Kong, making it the most fertile soil for a business-to-business fintech market.

Foreign investment

Swiss-based global private equity firm Partners Group, which has US$150 billion in assets under management, also opted to set up its new office in Hong Kong, with a view to further expanding its business in the Asia-Pacific region.

Its Head of Private Wealth APAC and Hong Kong Office Henry Chui believes that developing the firm’s private wealth business in Hong Kong was a crucial step as the city is the largest wealth centre in the Asia-Pacific, with 2,700 family offices and over 12,000 ultra-high-net-worth individuals.

Mr Chui also noted that with its global talent and unparalleled infrastructure, Hong Kong was the ideal place for the business to develop and expand its talent pool.

Not to mention, Hong Kong’s close proximity to the Mainland.

“It is an excellent springboard for us to develop our business and expand into the Greater China region,” he added.

Invest Hong Kong believes that as an international financial centre, Hong Kong offers a robust regulatory environment, along with abundant business opportunities and financial support, making it the ideal location for the development of fintech and digital finance. There are approximately 1,000 fintech companies in Hong Kong, covering various sectors.

Looking ahead, the department pointed out that there are three major trends worth watching.

First, Hong Kong, as the second largest cross-boundary wealth management centre in the world, has attracted a lot of wealthtech companies.

Second, the Government’s policies in promoting digital assets, including Web3 and blockchain, encourages relevant companies to develop their business in Hong Kong. The digital assets and blockchain segments have been the fastest growing segments for Invest Hong Kong over the past two years.

Third, aside from fintech, a sub-segment called green fintech has become a major focus for future development, seeing as Hong Kong is also a leading international green finance and greentech hub.

Promoting fintech

A range of events focused on fintech development in Hong Kong will be held throughout this month, including Hong Kong FinTech Week 2024.

With the theme “Illuminating New Pathways in FinTech”, the event will be held from October 28 to November 1, and is anticipated to attract approximately 30,000 attendees from more than 100 economies.