Innovation ecosystem

With the aim of making itself a global innovation and technology hub, Hong Kong is ramping up efforts to bolster technology applications in various sectors. A landmark was reached in 2020 as eight virtual banks went into full operation, delivering financial services entirely online with no physical branches by virtue of emerging technologies.

Backed by Hong Kong's vibrant innovation and technology landscape, virtual banks have gained momentum in business expansion, said Ari Zhou Ming, executive director and chief executive of Fusion Bank - one of Hong Kong's eight licensed virtual banks.

Headquartered in Hong Kong, Fusion Bank has become a favorite business project among private investors. Apart from Shenzhen-based internet giant Tencent Holdings, other shareholders include Hong Kong Exchanges and Clearing and property tycoon Adrian Cheng Chi-kong.

The Hong Kong Monetary Authority rolled out the "Fintech 2025" strategy last year to spur the city's financial sector to comprehensively adopt technologies, such as artificial intelligence, blockchain, cloud computing and big data.

Hailing the "multi-pronged measures" Hong Kong has taken so far, Zhou said he is confident about the city's business prospects. "The SAR government had set up InvestHK - the official body responsible for attracting foreign direct investment. This has helped Hong Kong carve a place in the national fintech ecosystem that will further consolidate its position as a world financial center."

With Hong Kong's rapid integration with other cities in the Greater Bay Area, and the expansion of cross-border investment channels, there are abundant opportunities for technological innovation in the future, said Zhou.

Apart from creating official bodies like the Innovation, Technology and Industry Bureau, the HKSAR government established Hong Kong Science and Technology Parks Corp and Cyberport as incubators of startups to accelerate technological innovation and commercialization.

Given its well-established innovation landscape and status as a leading financial center, Hong Kong is seen as a popular tech hub to develop businesses, according to a report released by the FinTech Association of Hong Kong, which surveyed more than 70 tech-related companies involved in activities that include artificial intelligence and big data. Up to 70 percent of the respondents regard Hong Kong as their top market, with more than 80 percent of them planning to increase their headcounts in the city.

Hong Kong Financial Secretary Paul Chan Mo-po is beaming with confidence, saying Hong Kong's innovation ecosystem has become increasingly mature and is ready to contribute more to the city's economy and competitiveness in the next few years.