Speech by FS at Hong Kong FinTech Week x StartmeupHK Festival 2025 (English only) (with photos/video)
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Distinguished guests, ladies and gentlemen,
I'm delighted to join you today, and I know we're all looking forward to the fireside chat with the group CEOs of two of Hong Kong's leading banks — a conversation that promises to be insightful and inspiring.
But before we begin, allow me to share some points about the Government's policy vision in driving forward fintech development in Hong Kong.
In the financial sector, we firmly believe that digitalisation is a transformative force that must be embraced. It enhances efficiency, reduces costs, enables more personalised services, and plays a critical role in promoting financial inclusion.
Technologies like AI and blockchain hold immense potential — from automating processes and improving credit assessments, to strengthening compliance and enabling near-instant, low-cost payments. But with these benefits come important challenges: algorithmic bias, data privacy, investor protection, and risks to financial stability. They must all be carefully addressed.
To fully harness the power of digitalisation while managing its risks, robust governance frameworks are essential. Just as important is close collaboration between the public and private sectors to drive innovation forward.
Allow me to share three key observations from our journey in building a vibrant fintech ecosystem.
Financial inclusion as an objective
First, the ultimate goal of financial innovation is to serve the real economy and improve lives. One of the greatest promises of fintech is promoting financial inclusion. And we believe that innovative solutions and stronger data connectivity through public-private partnerships are key to unlocking this promise
A great example is the Commercial Data Interchange (CDI) launched by the HKMA (Hong Kong Monetary Authority) in 2022. It enables small and medium enterprises (SMEs) to share business data with banks on a consent basis, to facilitate faster and fairer credit assessments. Today, the CDI connects 17 data providers, including government agencies, and has already supported over 71 000 loan applications amounting to more than HK$58 billion. And we're not stopping there. Work is underway to expand its scope further to include more data sets and use cases, for example, bringing trade and logistics data into financing decisions.
Financial inclusion also means convenience. The Faster Payment System (FPS) is a case in point. It has not only transformed local interbank transfers but also gone cross-boundary. The FPS is now linked with the Mainland's Internet Banking Payment System as well as Thailand's PromptPay, enabling real-time, cross-border payments for users.
We're also empowering startups as drivers of inclusive innovation. With around 1 200 fintech companies in Hong Kong, we support their growth so they can scale their solutions and prosper.
For instance, through the Hong Kong Investment Corporation, we've invested in micro-lending platforms expanding into Southeast Asia, helping deliver inclusive financial tools where the demand is accelerating.
Regulators as enablers of innovation
The second observation is that regulators can and should be enablers of innovation. In Hong Kong, our financial regulators have a dual mandate — prudent regulation and market development facilitation.
For example, over the years, we've implemented a range of regulatory sandboxes that allow innovators to test new products in a controlled environment, receive timely regulatory feedback, and refine their solutions before going to market. These sandboxes foster collaboration between regulators and innovators, often leading to the co-creation of entirely new solutions.
One area where this is especially visible is tokenisation, which is rapidly gaining traction, enabling faster, more secure and more efficient transactions.
That's why Project Ensemble was launched last year — to explore tokenised assets, platform interoperability, and common industry standards. It's a collaborative effort involving both local and international players, and it reflects our belief that experimentation must evolve together with technology. I'm glad to note that Ensemble Pilot will be rolled out, enabling real value transactions in tokenised deposits and digital assets. And tokenisation is enabling a wealth of new investment products such as tokenised money market funds.
The Government is also leading by example. Our issuance of tokenised green bonds has not only set a market benchmark, but also encouraged broader adoption of sustainable digital finance.
Responsible and sustainable innovation
Third, responsibility and sustainability are vital in financial innovation — especially in areas like digital assets and AI. While we must encourage innovation, we must also ensure its real-world applicability, investor protection, and financial stability impact.
When it comes to regulating digital assets — whether digital asset trading platforms or stablecoins — we adhere to the principle of "same activity, same risk, same regulation". In particular, our regulatory approach to stablecoins is clear: they are not intended for investment, but rather as a tool to facilitate cross-border transactions and real-world economic activity. That's why, under our licensing regime, approvals will be granted only to applicants that demonstrate genuine use cases backed by sustainable and robust business model.
We take a similar approach with AI. As part of the Government's broader "AI+" strategy, we're embedding AI across sectors, attracting global talent and enterprises, and encouraging cross-sector collaboration.
But we also recognise the risks. Last October, we issued a policy statement on the responsible use of AI in financial services. It adopts a "dual-track" approach: promoting adoption while addressing risks like cybersecurity, data privacy, and IP protection.
Concluding remarks
Ladies and gentlemen, as we mark the 10th anniversary of Hong Kong FinTech Week and the StartmeupHK Festival, we're celebrating a decade of impact, ambition and bold ideas.
These two signature events have brought together visionary entrepreneurs, global investors, policymakers, and industry pioneers from around the world — all united by a shared belief: that technology can make finance more inclusive, more efficient and more human.
By having you all, and with our concerted efforts, I'm sure that Hong Kong will grow stronger as a vibrant, future-ready hub for fintech excellence.
Thank you.
Ends/Monday, November 3, 2025
Issued at HKT 14:00
Issued at HKT 14:00
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