On the 16th of this month, Hong Kong Chief Executive John Lee delivered his third policy address during his tenure. In the chapter on consolidating and enhancing the status of an international financial center, there is a lot of content; in the chapter on new productivity, it also mentioned the need to build a financial technology innovation ecosystem .
Just two weeks after the Policy Address was released, Hong Kong announced several major news in financial technology.
First, the Hong Kong SAR government issued a policy statement on the responsible application of artificial intelligence in financial markets. The content includes Hong Kong’s adoption of a dual-track approach to promote the adoption and development of artificial intelligence in the financial services industry, while at the same time addressing potential challenges such as cybersecurity, data privacy and intellectual property protection.
Financial Secretary Paul Chan Mo-po bluntly stated that Hong Kong has an open and prudent attitude towards the application of artificial intelligence in the financial market. The policy statement clearly sets out the government’s policy stance and approach to promote the responsible application of artificial intelligence in financial markets. The Secretary for Financial Services and the Treasury, Paul Chan, stressed that the policy declaration has two legs: controlling risks and promoting development. He hopes that the financial industry can make greater use of AI to reduce costs and improve efficiency.
Secondly, the Hong Kong Stock Exchange has made big moves in the virtual currency market. The Hong Kong Stock Exchange announced that it will launch the Hong Kong Stock Exchange Virtual Asset Index Series on November 15 to provide a reliable benchmark price for this rapidly emerging asset class, supporting Hong Kong’s development into Asia’s leading digital asset center.
In fact, the Hong Kong SAR government issued a policy statement on the development of virtual assets in 2022, hoping to cultivate a vibrant virtual asset industry and ecosystem in Hong Kong. The index series provides an intuitive reference to help the public better understand virtual asset investment trends.
In addition, Hong Kong has taken the initiative to break down the cross-border payment barriers with the Mainland. The Hong Kong Monetary Authority is working closely with the People’s Bank of China to establish connectivity between Hong Kong’s Faster Payment System (FPS) and the mainland’s online banking payment system, with a pilot program expected to be launched in the middle of next year.
“FPS” is a successful innovation in the field of financial technology in Hong Kong in recent years. It has been interconnected with the Thai payment platform. If it can be connected with the mainland, it will bring huge convenience and integration.
In an exclusive interview with Hong Kong China News Service a few days ago, Chief Executive John Lee identified digitalization and greening as the two major elements for developing new quality productivity. These two items are also the focus of Hong Kong’s current efforts to establish growth points in the financial sector. A number of specific paths in the direction of digitalization have been released, and the financial and technology industries have demonstrated a proactive attitude.
HSBC Hong Kong Chief Executive Officer Carol Lam said at the meeting that artificial intelligence can change the way banks serve their customers and improve the industry’s operational efficiency. The bank is currently testing about 100 generative AI solutions and believes that in the future development of technology and AI, there will be more cooperation rather than competition between banks and fintech companies.
This year’s policy address emphasizes deepening reform and exploring new growth points. Hong Kong has an extremely mature and international financial market with a large scale and deep accumulation. As a testing ground for reform, it has taken the lead.