Hong Kong Financial Market
Hong Kong’s financial services sector is a promising market for U.S. financial technology companies.
Hong Kong is a leading international financial center and has highly active and liquid securities markets. There is no control over capital movement, and no capital gains or dividend income tax.The financial services sector remains one of Hong Kong’s most important economic pillars and accounts for 18.9% of the city’s GDP. Hong Kong is a vibrant city, with constant activities and programs in the financial services sector. Owing to its robust financial infrastructure, location, and history, Hong Kong serves as a springboard for foreign firms seeking access to Mainland China, and vice versa.
Hong Kong has a vibrant fintech community. According to the latest fintech study conducted by InvestHK, there are over 600 Fintech companies and startups operating in Hong Kong covering various verticals, including mobile payment, cross-border remittance, robo-advisory services, wealth management, blockchain technologies, etc. In the first half of 2019, the Hong Kong government granted licenses to eight virtual banks in the Hong Kong.
Some of the best fintech prospects in Hong Kong for U.S. companies include payments, securities settlement, digital ID and Know Your Client (KYC) Utilities, WealthTech, InsurTech, Data Analytics, Automation, AI, Anti-Money Laundering (AML), and RegTech. In light of the pandemic, electronic platforms and automation technologies in the financial services sector present burgeoning opportunities.
The Hong Kong Government aims to push Hong Kong’s status as a financial center, and has highlighted fintech as a key focus subsector. The Hong Kong Monetary Authority (HKMA) has implemented seven smart banking initiatives:
Fintech Supervisory Sandbox
Banking Made Easy
Closer cross-border collaboration
Research and Talent Development
Faster Payment System
The U.S. Commercial Service is pleased to recently have helped an American fintech company win a sizable contract with two of Hong Kong’s major banks.
For more information please contact:
U.S. Commercial Service, Hong Kong
Phone: +852 2521 1467