Plans fintech infusion for local banking sector, plus data-sharing infrastructure
Hong Kong has revealed a strategy to give its financial services sector a fintech infusion. The sector is important to Hong Kong, as it accounts for around 20 per cent of GDP and seven per cent of employment. Hong Kong’s also important to China, as its markets are more open to the world than the Middle Kingdom’s own stock exchanges and banks. Chinese companies often seek Hong Kong listings to access foreign capital. However, China’s recent actions to unwind the “one country, two systems” governance model for Hong Kong have led to much speculation about the future of the Special Administration’s financial services industry. The new strategy, outlined this week by Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, appears to assume that Hong Kong will remain a financial hub. The CEO said the HKMA “will begin a study on e-HKD to understand its use cases, benefits, and related risks” and ensure the Special Administrative Region is ready to handle all central bank digital currencies.
