As part of FinTech Week 2023, the Financial Services & the Treasury Bureau today announced a series of initiatives to foster the co-development of fintech and the real economy in Hong Kong.

Such initiatives include launching a new Integrated Fund Platform (IFP) and welcoming cross-boundary e-CNY applications to benefit inbound and outbound visitors between the Mainland and Hong Kong.

Another strategy aims to promote real economy related applications and innovations by the Virtual Assets and Web3.0 sector, in addition to efforts to enhance further development of the regulatory framework.

The new IFP, which will be developed and operated by Hong Kong Exchanges & Clearing, targets the retail fund sector, covering the front-to-back distribution life cycle and value chain, and is proposed to better serve investors, fund managers, distributors and other stakeholders.

It will serve as a communication hub; a business platform as well as an information portal to further strengthen Hong Kong's position as an international asset and wealth management centre.

Meanwhile, Octopus Cards Ltd (OCL) has partnered with Bank of China Shenzhen Branch to facilitate the purchase of e-CNY hard wallets by Hong Kong residents, via Self-service Card Issuing Machines in Lo Wu, using the Octopus mobile application.

Bank of China (Hong Kong), on the other hand, has launched services facilitating payment by inbound Mainland visitors to retail merchants with e-CNY wallets in Hong Kong, and offering Hong Kong customers a convenient option to top up e-CNY wallets from their Hong Kong personal bank accounts.

As a next step and subject to regulatory approval and technical readiness, the bureau welcomes OCL to provide an inbound solution facilitating Mainland tourists' use of e-CNY in Hong Kong through topping up Octopus Cards in tourist mobile application.

As regards the virtual assets and Web3.0 sector, the Government encourages market participants to explore the potential of the underlying technologies of Web3.0 to empower real economy related applications and innovations.

On the regulatory side, the Securities & Futures Commission will issue circulars on intermediaries engaging in tokenised securities-related activities and tokenisation of authorised investment products to shed light on the regulatory expectations from an investor protection perspective.

The Government said it intends to expand the regulatory remit to cover the buying and selling of virtual assets beyond trades taking place on virtual assets trading platforms.

With respect to the regulatory regime for stablecoin issuers, the bureau and the Monetary Authority will issue a joint consultation on the legislative proposal for implementing the regime in due course.

On banks' provision of digital asset custodial services, the banking industry is being consulted on the authority's guidance to ensure client assets are adequately safeguarded and that the risks involved are properly managed.

Financial Secretary Paul Chan noted that the Government is committed to promoting fintech development in Hong Kong to enhance the competitiveness of its financial services industry and the real economy.

“The various relevant policy measures promoted in recent years clearly demonstrate our firm support for the rapid and robust development of the fintech sector," he said.

Secretary for Financial Services & the Treasury Christopher Hui stated that the bureau further announced fintech initiatives this year to reflect its strategic views and visions for taking the market forward.

“From launching a new Integrated Fund Platform to welcoming e-CNY applications, and promoting real economy related applications and innovations by the virtual asset and Web3.0 sector, these initiatives will contribute to the real economy and provide further impetus for growing our fintech ecosystem," he added.