Displaying items by tag: hong kong

Hong Kong as Asia’s top crypto hub? Really? That is our reaction to the speculation that the Chinese SAR could beat out Singapore for Asia’s crypto crown that has emerged since Hong Kong officials at Hong Kong Fintech Week announced a public consultation on how retail investors could have a suitable degree of access to digital assets under a new licensing regime. Rules currently limit crypto trades to institutional investors with a portfolio of at least HK$8mn ($1mn). Yet it is hard to see how Hong Kong can chart such a markedly different course on crypto than mainland China.

Published in Blockchain Research

Hong Kong issued eight digital banking licenses more than a year ago, but just one of the new virtual banks is fully operational, ZhongAn Insurance-backed ZA Bank. ZA Bank began operations this month after completing a mandatory trial in March. Three other Hong Kong digital banks recently began trials: Ant Financial's Ant Bank, Xiaomi and AMTD's Airstar Bank and Standard Chartered-backed Mox Bank. The other four Hong Kong digital banks have not announced when they will launch trials.

Initially, it seemed Hong Kong's virtual banks had arrived in the right place and at the right time. The city has plenty of banking options, but innovation among incumbents has been limited in recent years. Retail customers are eager for new digitally forward banking platforms. But last year's protests and the coronavirus outbreak have delivered a punishing blow to Hong Kong's economy. The city fell into recession well before the global economic malaise brought on by the coronavirus. Hong Kong's digital banks have struggled to gain momentum under these circumstances.

Published in Asia Banking Research

Well before COVID-19 broke out, Hong Kong's future as a global financial center was in question. The protests that broke out last year have raised concerns about the city's ability to maintain its unique competitive strengths. Further erosion of political stability and the rule of law will augur ill prospects for the former British colony. In the short run, it is true that none of Hong Kong's neighbors can challenge its position as the region's preeminent financial center. But Hong Kong cannot assume that will never change.

Published in Asia Banking Research

Hong Kong entered 2020 in recession and wracked by political unrest. It remains Asia's paramount financial center for now, but its future looks uncertain. Holding onto incumbents is less of a problem than persuading tomorrow's rising stars to base themselves in the city. 

Published in Fintech Research

In 2019, the Asian tiger economies cautiously welcomed virtual banks. The financial centers of Hong Kong and Singapore as well as the advanced manufacturing hubs of Taiwan and South Korea can all benefit from digital-first competition in their respective financial sectors, where incumbents dominate. That has led to some complacency.  

Published in Asia Banking Research

Hong Kong banking giant HSBC can no longer rest on its laurels: The virtual banks are coming. With its deep local roots and wealthy customer base, HSBC has long been the dominant retail bank in the city. With the arrival of internet-only banks backed by the likes of tech giants such as Alibaba and Tencent, HSBC faces serious native digital competition for the first time.

Published in Asia Banking Research

Singapore's race with Hong Kong to become Asia's fintech hub is heating up as the city-state mulls issuing licenses for virtual banks. Both cities have long been major regional banking centers. With Hong Kong increasingly reliant on business from mainland China, Singapore has a chance to capture more regional business, especially from Asean.

Published in Asia Banking Research

In the late 20th century, Hong Kong became the undisputed financial center of the Far East. Tokyo might have had a larger stock exchange, but the city never saw itself as a global financial hub. It was Hong Kong that attracted large global banks, PE firms and hedge funds to establish regional headquarters.

Published in China Banking Research

June 25th 2018, Ant Financial launched its E-wallet cross-border remittance service based on blockchain technology. Customers using Alipay HK can transfer money in real time to another E-wallet Gcash based in the Philippines.

The Hong Kong Monetary Authority (HKMA) published revised ‘Guideline on Authorization of Virtual Banks’ on May 30th, 2018, opening the gateway of a new banking type – virtual bank.

Published in China Banking Research
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