Chief Executive John Lee Ka-chiu delivers his opening address at Hong Kong FinTech Week on Thursday. (PHOTO / HKSAR GOVERNMENT)

Fintech has the potential to fortify Hong Kong's position as a prominent global financial hub and drive sustainable innovation in green initiatives, with a series of initiatives in motion to strengthen Hong Kong's fintech capabilities, according to the SAR’s top officials at this year’s Hong Kong FinTech Week (Oct 30-Nov 5).

“Hong Kong is one of the world's leading financial centers, boasting a unique advantage that no other economy can lay claim to. Operating under the principle of ‘one country, two systems’, Hong Kong possesses the capability to draw on and create opportunities from both our country and the world at large,” said Chief Executive John Lee Ka-chiu in his opening address at FinTech Week on Thursday.

According to Lee, the platform aims to strengthen connectivity between Hong Kong's fund industry and the mainland’s financial markets in the long run, and to boost Hong Kong's competitiveness as an international hub for funds

Lee pointed out that Hong Kong is Asia's key hub for asset and wealth management, with close to $4 trillion worth of assets under its supervision last year. Notably, around two-thirds of these investments originate from sources outside Hong Kong. In addition, the city serves as the world's largest offshore RMB (renminbi) business hub, handling about 75 percent of global offshore payments.

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Lee said that the Hong Kong Exchanges and Clearing has plans to establish a new, integrated fund platform. “It will focus on services related to fund subscription and redemption, settlement, the information portal and more.”

According to Lee, the platform aims to strengthen connectivity between Hong Kong's fund industry and the mainland’s financial markets in the long run, and to boost Hong Kong's competitiveness as an international hub for funds.”

Furthermore, Lee emphasized the importance of integrating fintech and green finance to expedite the green transformation of the economy. 

“We will promote a better integration of fintech and green finance to fast-track our economy's green transformation. We will expand green fintech and, in doing so, establish Hong Kong as a green fintech hub.” 

Lee specifically referred to the subsidy scheme for green fintech, which provides early-stage funding support for the pre-commercialization of innovative green fintech solutions.

Addressing the same event, Financial Secretary Paul Chan Mo-po underscored fintech’s significance in having a real impact on and bringing tangible benefits to people’s lives.

“Fintech is not just financial technology’s portmanteau. It's also a catalyst for driving change and innovation, for making financial services more accessible, inclusive, efficient and user-friendly,” Chan said, adding that Hong Kong’s fintech ecosystem is illustrative of this important undertaking. 

Financial Secretary Paul Chan Mo-po addresses those attending Hong Kong FinTech Week on Thursday. (PHOTO / HKSAR GOVERNMENT)

According to the finance chief, the number of fintech companies and startups in Hong Kong rose 25 percent, to around 1,000, compared with last year. Many of their founders come from different parts of the world. 

He also mentioned that an information-sharing platform, Commercial Data Interchange, launched in October 2022, had enabled more than 8,900 loan applications and reviews within its first year, with an aggregate credit approval amount exceeding HK$8 billion ($1.02 billion).

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In addition, Chan said the city is also stepping up cross-boundary collaboration with its counterparts while fintech firms have been keen to open up new markets elsewhere. 

Contact the writer at zhoujianxin@chinadailyhk.com

Contact the writer at evanliu@chinadailyhk.com