Hong Kong’s Finance Secretary Paul Chan Mo-po on Friday highlighted the importance of striking a balance between fintech innovation and risk mitigation in financial regulations to ensure a sustainable ecosystem. Chan delivered a speech on the second day of the annual Digital Economy Summit, which was organized by the Hong Kong Special Administrative Region government and Cyberport. “A healthy, sustainable ecosystem must have a strong immune system — that is, the ability to weed out the bad players, and insulate our financial system and stability from undue impact,” the finance chief noted. “The crux to this is whether we could apply balanced, proportionate regulation that will properly and adequately mitigate pertinent risks, while leaving sufficient room for innovative products and services to break new ground,” he added. Chan voiced confidence in the city's fintech sector, citing the significant surge in the number of fintech enterprises as proof of its growth. The number of fintech firms in the financial hub increased from 180 to more than 800 this year in five-year period, offering innovative services including mobile payments, cross-border transfers, virtual asset trading and blockchain. He said despite the COVID-19 pandemic, Hong Kong has continued to attract world-class talent and entrepreneurs to make the city their home, solidifying the city’s position as a “vibrant fintech ecosystem”. Chan said the proactive approach taken by the government and public sector to spur fintech development includes seed funding programs, investor matching, incubation, and professional support services for fintech startups. These efforts have created an environment in which fintech innovation can flourish, he added. The SAR government, in its 2023-24 Budget, allocated more than HK$700 million ($89.2 million) to accelerate the development of the digital economy, along with over HK$9 million for a series of international initiatives. The two-day summit, themed “Emerging with resilience: Fostering a smarter future”, aims to bring together entrepreneurs, policymakers, and academics worldwide to share their insights on topics such as smart cities, data innovation, fintech, Web3, artificial intelligence and big data, smart mobility, as well as new industrialization.

The Hong Kong Special Administrative Region is gearing up to embrace the digital economy with the support of national strategies and billions of dollars in funding, officials and technology pundits said on Thursday. Hong Kong Chief Executive John Lee Ka-chiu said during the opening ceremony of the Digital Economy Summit that “We are now to start a new chapter of the digital economy.” The two-day event, themed “Emerging with resilience: Fostering a smarter future”, aims to bring together entrepreneurs, policymakers, and academics worldwide to share their insights on topics such as smart cities, data innovation, fintech, Web3, artificial intelligence and big data, smart mobility, as well as new industrialization. Lee struck an optimistic tone about the city’s transition to a digital economy, citing its advantageous geographical location and support from national strategies. “Under the unique principle of ‘one country, two systems’, Hong Kong enjoys the unparalleled advantage of having the strong support of national strategies while being connected with the rest of the world,” Lee said. Lee also noted that the national 14th Five-Year Plan (2021-25) and the development of the Guangdong-Hong Kong-Macao Greater Bay Area are expected to elevate the city’s status as an international innovation hub. He said the widespread adoption of digital technologies had transformed traditional ways of conducting business during the COVID-19 pandemic. “From e-commerce and online education to remote work and smart city innovations, … the digital economy offers a way forward for businesses and individuals, providing opportunities for growth and proceeding in the face of uncertainties,” he said. The SAR government, in its 2023-24 Budget, allocated more than HK$700 million ($89.2 million) to accelerate the development of the digital economy, along with over HK$9 million for a series of international initiatives. Cao Shumin, deputy director of the Cyberspace Administration of China, said in his opening remarks that the digital economy has become an important engine for high-quality development with the advancement of the Greater Bay Area. She said Hong Kong needs to speed up construction of its data center and the intelligent transformation of traditional infrastructure, unleashing the commercial potential of data. “Hong Kong should fully leverage the advantages of the ‘one country, two systems’ principle” to help create an internationally competitive digital industry cluster for the Greater Bay Area, she added. Chen Dong, deputy director of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region, said Hong Kong demonstrated its potential for developing the digital economy with the establishment of the Institute of Web 3.0 Hong Kong, the opening of the first InnoEX, and the ongoing summit. What’s more, Hong Kong’s Top Talent Pass Scheme — offering fast-track employment visas for individuals with outstanding educational backgrounds, or those drawing high salaries — received approximately 5,800 global applications in the two weeks after its launch, highlighting the city’s appeal to international talent, he said. The annual summit was organized by the Hong Kong SAR government and Cyberport. Sun Dong, secretary for innovation, technology and industry; and Duncan Chiu, a lawmaker from the Information Technology functional constituency in the Legislative Council; attended the opening ceremony.

Hong Kong Chief Executive John Lee Ka-chiu struck an optimistic tone about the city's transition to a digital economy, citing its advantageous geographical location and support from national strategies. “We are now to start a new chapter of the digital economy,” the city’s leader said on Thursday during the opening ceremony of the two-day Digital Economy Summit. The financial hub is transforming in line with the central government's ambition to increase the nation's scientific and technological capabilities. Lee noted that President Xi Jinping emphasized the importance of innovation in the country's development strategy during last month's 14th National People's Congress in Beijing. “Under the unique principle of ‘one country, two systems’, Hong Kong enjoys the unparalleled advantage of having the strong support of national strategies while being connected with the rest of the world,” Lee said. He also noted that Hong Kong’s digital economy development is supported by the nation’s 14th Five-Year Plan (2021-25) and the development of the Guangdong-Hong Kong-Macao Greater Bay Area, which are expected to help the city become an international innovation center. Lee highlighted that the widespread adoption of digital technologies had transformed traditional ways of conducting business during the COVID-19 pandemic. “From e-commerce and online education to remote work and smart city innovations, … the digital economy offers a way forward for businesses and individuals, providing opportunities for growth and proceeding in the face of uncertainties,” he said. Lee noted the summit is the first in-person mega event in the field of innovation and technology organized by the local government since the financial hub reconnected to the world after the pandemic. The annual event, organized by the Hong Kong government and Cyberport, aims to bring together entrepreneurs, policymakers, and academics to share their insights on topics such as smart cities, data innovation, fintech, Web 3.0, artificial intelligence and big data, smart mobility, as well as new industrialization. Sun Dong, secretary for innovation, technology and industry; Cao Shumin, deputy director of the Cyberspace Administration of China; and Chen Dong, deputy director of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region attended the kickoff ceremony.