Hong Kong with its Incredibly Unique Positioning in FinTech

In the second part of our interview with Peter Mok, Head of Incubation and Acceleration Programs at the Hong Kong Science and Technology Park (HKSTP), he went into detail on the initiatives they have developed to combat the global talent shortage, bring Hong Kong’s lagging Fintech industry up to speed and he tells us how blockchain startups can leverage the Hong Kong-Shenzhen Innovation and Technology Park.

3 Initiatives to Combat the Global Talent Shortage 

Over the last decade, industries across the world have had to contend with the digital disruption of the Fourth Industrial revolution. Big industry had just experienced the global financial crisis and were too busy trying to maintain the status quo to adopt the new technology. The exponential explosion of new innovative technologies has created an equally impressive chasm in the technologically skilled workforce which has contributed significantly to the global talent shortage. In this ever-changing and unpredictable environment, HKSTP has remained committed to growing Hong Kong’s Innovation and Technology (I&T) ecosystem and has relentlessly strived to connect I&T companies with the right talent. 

After a few years committed to driving corporate interest in the Hong Kong I&T market, the lack of talent to meet the demand became a severe issue. Mok said, “In Hong Kong, we found an acute lack of talent for areas such as ‘life science’ and ‘IoT’ which are a huge part of our Smart City development. We came up with three main areas of support for our talent—placement training, the Hong Kong Science Park Career Expo and government collaboration.”

The Hong Kong Science Park is not a school and has no set curriculum. Mok expounded, “We don’t hire directly from the market. We work closely with research universities, community colleges and post-secondary colleges such as the Vocational Training Council, to channel their most promising students into the Hong Kong Science Park. Those students will be given a summer placement in a tech-company environment whether it be fintech, blockchain, life science, etc.” He continued, “While there is no set agreement for the company to offer more than a summer internship, the students are often invited to continue working part-time and in the majority of cases will confirm their employment with the organization before they graduate.”   

The second support system in place for emerging Hong Kong talent is the annual Hong Kong Science Park Career Expo. This year, the Expo saw its largest turnout with over 13,000 visitors seeking information and new careers with Hong Kong’s growing I&T sector. Mok shared, “Over 1600 positions were offered at the Expo this year by around 150 local and international companies. The four major technology fields (Biomedical Technology, Artificial Intelligence and Machine Learning, Smart City and FinTech) were well represented. The Expo has become a very important event for not only our I&T talent but also talent seeking technology-related positions which are also in high demand.”   

HKSTP’s third area of support for I&T talent is research subsidy through two programs created in collaboration with the Hong Kong Government— the Researcher Programme and Postdoctoral Hub Programme. Mok explained, “Every company that resides in the Science Park will be able to apply for up to two researchers in the Researcher Programme and the R&D projects under the “Innovation and Technology Fund” (ITF) can engage up to 2 postdoctoral talent for Postdoctoral programme applications. The Researcher Programme supports park companies to recruit graduates with a Bachelor’s or Postgraduate degree in assisting R&D projects on a full-time basis for 3 years. For Postdoctoral Hub Programme, the park companies can hire PhDs from local or overseas universities. Visa application is often a pain point in recruiting overseas talents. This issue can now be addressed by the Technology Talent Admission Scheme (TechTAS) launched by the government. HKSTP will help the park companies submit the application to facilitate visa applications of overseas talents. He added, “There are no limitations on the nationality of the researchers and through this scheme, we can attract the best researchers both locally and globally.” 

Hong Kong’s FinTech position is “Incredibly Unique”  

Financial Technology, more commonly referred to as FinTech, looks set to reshape the financial sector in the coming years and presents Hong Kong with both challenges and opportunities. According to various reports, Hong Kong, despite its large financial sector, as of yet has only had a modest showing in the FinTech space and lags behind cities such as Shenzhen, Taipei, and Singapore.

“Hong Kong’s position is incredibly unique when compared to our rival Asian cities. The quality of our economic structure, the free flow of capital and information sets us apart. However, presenting our low-tax rate to a struggling tech startup that has not yet made any revenue is not effective motivation for them to set up their business.” Mok said, “Our STEP programme will help bridge the gap in FinTech, through the support we can offer these tech startups in our ‘Incu-App’ and ‘Incu-Tech’ programs as well as the support-systems I’ve already mentioned. For example, one of our Incu-Tech companies which has only been established for two years is already working with around ten of the largest banks in the world, so we have already had some success.” 

Hong Kong’s position as one of the top three global financial centers means that a lot of legacy financial systems are already in place. Mok believes that, eventually, this financial history and experience will allow Hong Kong to overtake its rivals in the FinTech space. “Cities like Shenzhen appear further along, and to some extent they are, but their focus has mainly been on e-payments and e-remittance because they don’t have the legacy systems in areas such as compliance to enhance, they will need to build these systems from the ground up.”

He added, “The Greater Bay Area initiative will also require us to work together and advance together technologically. Competition with the cities in the GBA happens on a daily basis, however, don’t underestimate the potential of collaboration with your partners or competitors. The GBA will allow more collaboration with our neighbors and we can learn from each other.”

Lok Ma Chau Loop: The Tech Gateway for the GBA 

The HKSTP’s infrastructure for research and development is world-class and there are plans to continue its expansion but ultimately, they are limited by the space around them. Occupying a strategic location in Hong Kong bordering Shenzhen, the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop offers four times as much land area as Hong Kong Science Park, giving Hong Kong’s innovation and technology ecosystem more room to grow.

HKSTP’s infrastructure in facilitating Greater Bay Area collaboration, photo taken in Wheelock Gallery of HKSTP, Admiralty

Size matters but the location matters more to Mok. He explained, “Having a fully integrated Science Park on the Lok Ma Chau Loop is important as it allows us to share our relevant expertise and to tap the supply chain, manufacturing capabilities and talent pool across the border. This sharing of technical knowledge will be critical to the development of the Greater Bay Area.”

Peter Mok image via techgoondu.com

Blockchain and IoT: Transforming Hong Kong into a Smart City

Blockchain and IoT: Transforming Hong Kong into a Smart City

In December of 2016 the Hong Kong Government released the Smart City Blueprint with a vision to develop Hong Kong into a world-class smart city. The key aims of this transformation are to improve the connectivity, efficiency and environment of Hong Kong by leveraging advances in digital information technology and data collection.

While the phenomenal growth of Information and Communication Technologies (ICT) being deployed has provided ubiquitous connectivity and intelligent automation—transforming into a Smart City demands attention and cooperation from businesses and the public as significant resources are required to support the new infrastructure. One such technology that will prove vital in this cooperation of many actors is blockchain and specifically the way it interacts with the Internet of Things (IoT).Blockchain

Blockchain is a distributed ledger technology (DLT) which was originally created as a way to support cryptocurrencies, namely Bitcoin, but its real-world applications have spread far beyond the coin-sphere. Ultimately, what blockchain technology does is create an encrypted and decentralized ledger or data storage structure that shares information utilizing peer-to-peer networks and provides instantaneous updates to every single party involved. As the name implies, blockchain is literally a chain of digital blocks that contain records and transactions. Each block is connected to the ones before and after it. This makes it very difficult to change a single record as a hacker would need to change the block containing the record and as well as those linked to it to avoid detection. The records on a blockchain are secured through cryptography. Network participants have their own private keys that have a personal digital signature. If a record is altered, the signature will become invalid and the peer network will know immediately that something has happened. Blockchains are decentralized and distributed across peer-to-peer networks that are continually updated and kept in sync. Because they are decentralized, blockchains have no single point of failure and cannot be changed from a single computer. It would require massive amounts of computing power to access every instance (or at least a 51 percent majority) of a certain blockchain and alter them all at the same time. Internet of Things (IoT)

As the world continues to innovate and globalize, connectivity has never been easier and we are starting to see more and more things have the ability to connect to the internet. IoT , put simply, is the idea of basically connecting any device with an on and off switch to the Internet — and sometimes to each other. This includes everything from mobile phones, cars, headphones, refrigerators, and host of others. As of Aug 2018, there are 5 billion connected devices, expect to reach 29 billion by 2022(NCBI, 2018). Softbank CEO Masayoshi Son predicts 1 trillion devices for IoT in next 20 years.

As Hong Kong is being thrust into a state of unprecedented growth to achieve its Smart City vision, major challenges follow as it seeks to enhance its sustainability, population’s health, environmental impact, and safety. The Internet of Things (IoT) offers new opportunities for Hong Kong to use data to manage traffic, cut pollution, make better use of infrastructure and keep citizens safe and healthy.Blockchain and IoT

The communication between these devices with each other and the internet can be facilitated through blockchain technology— which allows for a list of interactions between the devices and the internet. A blockchain platform at the center of an advanced Smart City could keep track of not only which devices interact with each other and the internet, but also what is being done through each interaction. As blockchain was designed as a basis for applications that involve transactions and interactions, it pairs perfectly with the management of IoT data.Some of the ways in which blockchain can actually improve connectivity and IoT is through the utilization of smart contracts. These smart contracts rely on automation to speed up and streamline the contractual processes and are carried out when a specific condition is met. For example, in the construction industry, project managers could set up a system that self-executes payments to contractors and eliminate the current gaps and delays that hold construction up at various stages. In a broader sense, it could be regarding the conditions of goods, environmental conditions, or any other smart application that supports specific Internet of Things processes. The inherent security and transparency that blockchain platforms offers can not only just improve compliance in the IoT but also its interactional features and cost-efficiency as well.

Blockchain technology solves many issues when it comes to enabling peer-to-peer contractual behavior without any third party to “certify” IoT transactions. Some of the biggest issues include scalability, the threat of single-point failure, time stamping, and securing transactions. This is where blockchain technology comes into play, essentially offering a consistent solution to each of these issues.  Smart City Blockchain ImplementationIn the September edition of Smart Vision Magazine, which is published by the Smart City Consortium (SCC), Jase Leung, CEO & Founder, Blockchain Solutions Limited, highlighted the technology’s potential in his article, ‘Smart City: How blockchain shapes Hong Kong future’. Below are two examples of turnkey solutions in blockchain and IoT that his company is currently implementing in the spirit of Smart City:

 – CertAuth (Education and Human Resources)—a cross-certification platform that verifies authenticity of academic transcripts to combat forged educational and professional certifications, which are on the rise due to high demands and competition of the job-market. CertAuth aims to enhances security, reduce recruitment processes and ensure the authenticity of Hong Kong’s skilled workforce.

 – CARMOB (Transportation & Insurance)—partnering with a local taxi-leasing company, a tailor-made onboard diagnostics device records and uploads the taxi’s data to the blockchain which is then analyzed to determine the driver’s attitudes and patterns. Based on these data insights, taxi owners and insurance companies can make more informed decisions regarding the driver’s lease and insurance eligibility.

HK Institutions Dedicated to Smart Evolution

Hong Kong Science and Technology Park (HKSTP)HKSTP have set up Hong Kong’s first Smart Region, creating the ideal testbed for pushing forward the Smart City vision, leveraging the city’s attributes of dense population, efficiency, world-class ICT infrastructure and high internet connectivity. Within the Smart Region, incubation programmes are financed and supported for FinTech and Blockchain Startups. The core incubation programs are:

 – Incu-App–a 2-year program aimed at companies and startups focused on electronics, green technology, ICT technology and material and precision engineering;

 – Incu-tech—a 3-year program aimed at technology startups, working in deep tech research, during their inception stages; and

 – Incu-bio—a 4-year program aimed at supporting the growth and development of biomedical tech start-ups in Hong Kong. 

Peter Mok, Head of Incubation and Acceleration Programs, HKSTP explained, “HKSTP currently has three stages of support programs for technology startups. Mok said, “The goal is to support startups beginning from their conception stage all the way to their IPO. It is not necessary for the participants to even have a minimum viable product (MVP) during the application stage; we will start our support from the idea. At each of the three stages of incubation, a financial subsidy is included for the startup.” He continued, “The Government has funded over 250 startup projects by the six research universities and around 200 of them have received a three-year research grant, we will admit 100 of them into incubation at the Smart Region of HKSTP.”

CyberportMoving away from the focus on FinTech, Blockchain and IoT are also being leveraged to enhance Hong Kong’s global attraction and develop future world events. Cyberport has a cluster of start-ups focusing on e-sports. This sector is touted as an emerging billion-dollar industry and the start-ups in this cluster have also received government grants.

Charles Lam, Senior Manager, FinTech & Blockchain Cluster, Clusters Teams spoke on the development, “Teams from all over the world will fly in and compete. Companies such as Tencent – 51% of their revenue actually comes from the gaming industry.” 

As these games currently have not been built on blockchain, Lam explains the benefits of the technology, “Currently, if you delete the data and delete the players, then everything they have invested will be gone for good. If they decide to build the game on a blockchain platform, all the tools could be sold like a virtual asset. If the platform would run on a blockchain, then these games would truly be global.” This could create a “big ripple” in the gaming industry and Lam added, “that would truly be liberating for Hong Kong.” 

See For Yourself – Hong Kong Electronics FairFrom the 13 – 16 of October the Hong Kong Convention and Exhibition Centre will host the 39th HKTDC Hong Kong Electronics Fair (Autumn Edition) and 23rd electronicAsia events which will be held concurrently. The two fairs will gather around 4,300 exhibitors from across the globe, showcasing a wide variety of intelligent products, innovative start-up ideas, and electronic components.We recommend going along to two of the key forums—“Blockchain in Industrial IoT – The next big thing?” on 13 October, and the Hong Kong Electronic Forum to discuss advanced robotics, MicoLED trends, and applications for electronics products on 15 October.

Image via Shutterstock

China Hand-Picks the Greater Bay Area Surrounding Hong Kong to be the First to Deploy its CBDC

China’s central bank digital currency (CBDC) has been successfully launched earlier this year and the country is currently continuing its path towards fully launching its digital currency electronic payment (DCEP).

Recently, China’s major state-run banks have been testing out the country’s CBDC, according to Wang Zongmin, a former deputy chairman of the Social Security Fund Council. The DCEP project has been confirmed to have completed all backend developments.

China’s digital yuan, as explained by the Director-General of the Institute of Digital Currency at the central bank, is a two-tiered system that will soon be replacing M0, Chinese yuan fiat in circulation. Although the Chinese DCEP is still currently in its testing stage, China may well become the first country to issue a CBDC.

According to Southern Daily, a local news publication, experts believe that the financial technology industry in the southern province of Guangdong is fairly developed and that it has a “natural advantage” in carrying out the deployment of the digital currency. 

Why the Greater Bay Area?

The Greater Bay Area, the name given to the southern part of China, including the special administrative regions of Hong Kong and Macau, and 9 cities in the Guangdong region has been focusing on global trade and finance and is no stranger to blockchain. The Greater Bay Area accounts for around 12 percent of China’s national GDP.

In May 2020, China’s central bank, People’s Bank of China (PBoC) announced its development plans for a blockchain-based trade finance platform. He Xiaojun, the director of the Guangdong Provincial Local Supervision Bureau said that Guangdong will further encourage innovation, and break data barriers and deepen business integration with Hong Kong and Macau. 

According to the data from the Guangzhou branch of the country’s central bank, in the first quarter of 2020, the Guangdong Province recorded 4.537 billion mobile payment transactions with a value of 11.95 trillion yuan. Mobile payment transactions and transaction value increased by 37.97 percent in the last three years.

The DCEP is currently being tested in closed pilot trials in many of China’s developed cities, including Shenzhen, also in the Greater Bay Area. Bai Hexiang, the President of the Guangzhou Branch of the People’s Bank of China said:

“We support the first pilot application of digital currency payment scenarios in the Greater Bay Area and promote qualified financial institutions in the Greater Bay Area to become pilot institutions for digital currency launch operations. Sharing economy platform companies and retail platform companies participate in the digital currency payment application pilot program, accelerate the opening of digital currency applications by public service departments, actively expand digital currency payment application scenarios, and promote the first application of digital currency in the Greater Bay Area.”

Guangdong is considered to be a very important market in China, with its developed commerce, concentrated population and extensive foreign trade abilities — which could support the expansion of the rollout of China’s CBDC.

Greater Bay Area Blockchain Week 2021 to Bring Global Attention to Blockchain Innovation

A nearly week-long event of the GBA Blockchain Week 2021 will convene thousands of online viewers to the brightest spot on today’s global financial map. The event, including the core 2-day Virtual Summit, will be broadcasted globally and in China, showcasing cutting-edge technologies and its most exciting case studies.

Conference agenda will revolve around a series of keynotes, fireside chats and interactive live panel discussions led by over 100 industry experts. Over 2000 participants from 50+ countries are expected to attend the GBA Blockchain Week.

Key industries affected by technologies like blockchain and AI will be explored during sessions dedicated to development of smart regulation, DeFi, NFT’s, public blockchain networks, investment strategies, blockchain governance, as well as fintech bridges from GBA to EMEA regions.

China’s own Greater Bay Area such as Hong Kong and Macau as well as cities within the Southern Guangdong province, is home to almost 70 million people. The area consists of unique city clusters: the financial and legal centre for APAC, Hong Kong as well as Macau, enjoying the world highest GDP per capita. To top it off, China’s own Silicon Valley, Shenzhen. These counteract with other prominent bay area’s such as San Francisco or Tokyo. The area is a test ground for urban infrastructure innovations and financial tech, and is expected to see accelerated growth of capital and talent in the next few years.

Speakers and high-profile experts from all over the world will converge to GBA Blockchain Week 2021 to discuss major opportunities and prospects of China’s heavily discussed project of DCEP. The digital yuan has been already launched for several batches of testing in GBA. Participants will also assess legal frameworks and results of operation of virtual banks’ ecosystems in the region.

Themes mentioned on the event agenda will cover the brightest momentum for digital assets: the Bitcoin Bull-run has certainly boosted further interest, particularly from a vast number of professional investors within the Cryptocurrency believers club. Institutional investors definitely drive the attention to mass adoption, bringing together the big industry players and international regulators to create a safe and progressive environment.

Juwan Lee, Chairman of NexChange: “Greater Bay Area Blockchain Week brings a unique chance for the world to learn how technology changes the way so many industries operate in one of the most tech-advanced places on earth.”

About NexChange: NexChange Group is a venture builder and media platform specializing in Blockchain, FinTech, HealthTech, AI, and Smart Cities. NexChange is known for hosting annual Hong Kong Blockchain Week, a premiere blockchain event organised in closed collaboration with local governments.

For more information on the speakers, agenda, side events and partnerships, please visit https://www.gbablockchainweek.net or contact: info@nexchange.com

Image source: GBA Media

Greater Bay Area Blockchain Week 2021 to Showcase International Technological Bridges

A nearly week-long premiere virtual event will feature industry leaders discussing the most exciting use cases of blockchain application in fintech, healthtech, investment banking, supply chain etc., as well as strengthen links between China’s own Greater Bay Area and other countries.

 

GBA Blockchain Week 2021 will kick off on March 29th, with core Virtual Summit happening on the 30th and 31st. Exclusive content will be streamed globally and in China.

With Bitcoin price hitting all-time highs, one of the main points on the agenda is a high renewed crypto market interest, especially from institutions. During lively discussions, experts will also explore smart regulation, DeFi, NFT’s, public blockchain networks, investment strategies, blockchain governance, as well as fintech bridges from GBA to various regions, connecting the East and the West.

Names featured on the agenda throughout the week include:

●    Justin Sun, Founder, TRON & CEO, BitTorrent

●    Mance Harmon, Co-Founder & CEO, Hedera

●    Brian Behlendorf, Executive Director, Hyperledger, The Linux Foundation

●    Roger Ver, Founder, Bitcoin.com

●    Prof. Wei-Tek Tsai, Professor, Beihang University

●    Tom Trowbridge, Co-Founder, Fluence Labs & Former President, Hedera

●    Alex Mashinsky, Founder & CEO, Celsius Network

●    Albert Isola, Minister for Digital and Financial Services, Government of Gibraltar

●    Henri Arslanian, Global Crypto Leader, PWC

●    David Lee, Professor of Blockchain, Singapore University of Social Sciences

●    Dr. Ben Goertzel, Founder & CEO, Singularitynet & Ex-Chief Scientist, Hanson Robotics

●    Miko Matsumura, General Partner, Gumi Ventures & Co-Founder, Evercoin Exchange

●    Sheila Warren, Head of Data, Blockchain & Digital Assets

●    Perianne Boring, Founder & President, Chamber of Digital Commerce

●    Emmanuelle Ganne, Senior Analyst, Economic Research & Statistics Division, WTO

China’s own Greater Bay Area such as Hong Kong, Macau, and cities within the Southern Guangdong province, is home to almost 70 million people. The area is a test ground for one of the world’s first central bank digital currency, Digital Cash Electronic Payment (DCEP) by the

PBoC. With its urban infrastructure innovations and sophisticated financial tech solutions, GBA is expected to see accelerated growth of capital and talent in the next few years.

About NexChange: NexChange Group is a venture builder and media platform specializing in Blockchain, FinTech, HealthTech, AI, and Smart Cities. NexChange is known for hosting annual Hong Kong Blockchain Week, a premiere blockchain event organised in closed collaboration with local governments.

For more information on the speakers, agenda, side events and partnerships, please visit https://www.gbablockchainweek.net or contact: info@nexchange.com

Image source: GBA Media

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