HK a dynamic fintech hub

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

Video screenshot from news.gov.hk

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.

Video screenshot from news.gov.hk

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.

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. Source from news.gov.hk

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.

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. Source from news.gov.hk

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.

The Central Kowloon Bypass (Yau Ma Tei Section) is set to open on December 21, slashing the journey time from Yau Ma Tei to Kowloon Bay from approximately 30 minutes during peak hours to around five minutes.

Smart solutions: Highways Department Senior Engineer (Central Kowloon Route) Yanis Poon explains that the Smart Site Management Hub allows site activity to be monitored in real-time via cameras, Internet of Things sensors, water level sensors and other instruments. Image source www.news.gov.hk

The section spans 4.7km, including 3.9km of three-lane, two-way tunnel, and will connect the Kai Tak Development Area and Kowloon Bay in East Kowloon to the Yau Ma Tei Interchange in West Kowloon.

Highways Department Senior Engineer (Central Kowloon Route) Yanis Poon described the new road as an important corridor that will enhance the overall transportation network across the whole of Kowloon.

While many vehicular tunnels cross mountains and seas, the Central Kowloon Bypass (Yau Ma Tei Section) is an underground tunnel that passes through Central Kowloon, one of Hong Kong’s most densely populated urban areas. The project therefore demanded meticulous route planning and the ability to surmount numerous challenges.

Onward journeys: The western portal of the Central Kowloon Bypass (Yau Ma Tei Section) connects to the Yau Ma Tei Interchange, providing access to Kwai Chung, Tai Kok Tsui, Hong Kong Island West, Yau Ma Tei and Tsim Sha Tsui. Image source www.news.gov.hk

Engineering ingenuity

Construction of a 370-metre-long underwater tunnel connecting Ma Tau Kok and Kai Tak involved adopting a temporary reclamation construction method – and the restoration of the original seabed post-construction demonstrates the Government’s commitment to minimising environmental impacts.

Meanwhile, the tunnel between Ma Tau Kok and Yau Ma Tei, measuring 2.8km, was constructed using the drill-and-blast method, with some 2,400 blasts being executed. It was essential during these works to ensure that the approximately 240 buildings above and near the tunnel, including Queen Elizabeth Hospital, remained unaffected.

Ms Poon stated: “We have strictly controlled the timing of tunnel blasting. For instance, near the hospital area, blasting was limited to specific 15-minute intervals each day to ensure the medical equipment was not affected.”

She added: “As the tunnel passes extremely close to the MTR lines, with a minimum distance of only 3m, we switched to the drill-and-break method at the intersection point to ensure railway operations were unaffected.”

Another challenge came with the construction of a 400-metre-long tunnel under Kansu Street in Yau Ma Tei, the route of which overlapped with the existing Gascoigne Road Flyover. The project team had to relocate the flyover and demolish the Yau Ma Tei Car Park Building to construct the tunnel while maintaining the traffic flow during the entire construction period.

“To address this complex task, the team executed demolition and relocation in phases to maintain road user safety throughout construction,” Ms Poon explained.

Greater convenience: The eastern portal of the Central Kowloon Bypass (Yau Ma Tei Section) connects to the Kai Tak Interchange, allowing motorists to travel to and from Kai Tak, Kowloon Bay, Kwun Tong, Hong Kong Island East, Kai Tak Cruise Terminal and Tseung Kwan O. Image source www.news.gov.hk

Smart solutions

Given the project's scale, the Highways Department leveraged a range of innovative technology to enhance safety and efficiency. This includes implementing a Smart Site Management Hub (SSMH) that allows site activity to be monitored via cameras, Internet of Things sensors, water level sensors and other instruments. This platform enables project personnel to access real-time information.

“During Black Rainstorm warnings or when Typhoon Signal No. 10 was issued this year, we utilised the SSMH to monitor site conditions,” Ms Poon said. “Fortunately, we did not observe any flooding in our tunnel during these adverse weather events. It is a good opportunity to prove that our flood control system is effective.”

The department also deployed a Smart Over-Height Vehicle Detection System, which utilises detection cameras, light detection and ranging technology, and artificial intelligence. It identifies and stops vehicles that are over-height in order to prevent collisions with bridges under construction.