Hong Kong mulls new policies to make itself a global virtual assets trading center: official
Published: Oct 17, 2022 07:42 PM Updated: Oct 17, 2022 07:32 PM
Hong Kong File Photo: VCG

Hong Kong File Photo: VCG

Hong Kong Special Administrative Region (HKSAR) is mulling policies to promote the city as a global virtual assets trading hub, which is expected to consolidate its role of global financial center and enhance the influence of China in the virtual assets sector, experts said.

Paul Chan Mo-po, financial secretary of HKSAR wrote in his blog on Sunday that HKSAR will announce policy support for the development of virtual assets in Hong Kong during  Fintech Week from October 31 to November 4.

The policies will demonstrate the HKSAR’s vision to promote the city as an international virtual asset center and its commitment and determination to explore financial innovation with the global asset industry, Chan said.

The policies will introduce a supervision system covering HKSAR for virtual assets trading, the attitude of the HKSAR on virtual assets investors, and introduce pilot projects to gain technological advantages brought by virtual assets, Chan added.

The development on virtual assets trading will consolidate Hong Kong's position as an international financial center and strengthen China's influence in international virtual assets, Liang Haiming, dean of the Belt and Road Institute at Hainan University, told the Global Times on Monday.

By developing into an international virtual asset trading hub, Hong Kong can actively explore and invest in potential fintech-related enterprises in the countries which have joined the Belt and Road Initiative (BRI), especially in Latin America, Liang said.

On the other hand, it will actively attract fintech companies that have emerged in countries along the BRI in recent years to list on the Hong Kong Stock Exchange, Liang added.

According to China’s 14th Five-Year Plan (2021-25), the central government supports Hong Kong to cement its roles as global financial center while encouraging the city to explore new roles, including serving as a global innovation and tech center.

Hong Kong has a thriving fintech industry and vibrant ecosystem. About 67 percent consumers in Hong Kong use fintech products, one of the highest rates in the world,according to data from InvestHK.

There are now more than 600 fintech companies in Hong Kong, about a third of which are from overseas with businesses ranging from mobile payment, cross-border wealth management, compliance technology and virtual asset trading, Chan said.