As an international financial hub with a reputation for embracing innovation, Hong Kong has made bold strides to cement its position as a leader in financial technology and digital assets.
Today, the city is home to over 1,100 fintech firms specialising in areas ranging from mobile payments and cross-border wealth management to AI-powered financial consultancy. Hong Kong’s fintech sector includes eight digital banks, four virtual insurers and 11 licensed virtual asset trading platforms, and its total revenue is projected to reach US$606 billion by 2032, with an annual growth rate of 28.5 per cent.
The Hong Kong government has been devising policies to facilitate the city’s fintech development. In 2023, it was among the first in the world to establish clear licensing frameworks for virtual asset trading platforms.
More recently, the passage of the Stablecoins Bill in May marked a significant step in the regulation of virtual assets. The bill, which establishes a licensing regime for fiat-referenced stablecoins issuers in Hong Kong, joins the existing licensing regime for virtual asset service providers that governs exchanges and trading platforms. Together, they provide comprehensive oversight of the city’s virtual asset ecosystem, from asset creation to trading.
Fintech is one of the five targeted industries for the Office for Attracting Strategic Enterprises (OASES), a government initiative launched in 2022 to attract high-potential overseas and mainland companies to establish or expand their operations in Hong Kong by providing one-stop tailored support, from regulatory guidance to business networking. The other four industries are artificial intelligence and data science, advanced manufacturing and new energy technology, life and health technology, and cultural and creative technology.
Since its inception, OASES has supported 84 strategic enterprises, which are projected to invest about HK$50 billion (US$6.39 billion) and create over 20,000 jobs in Hong Kong over the next few years, bolstering the city’s economic growth and innovation landscape.