Hong Kong's new digital economy policy unveiled: Virtual asset ETF listing brings opportunities for financial technology innovation

Recently, a seminar focusing on the development of the digital economy in Hong Kong was held in Wuhan. Business representatives from Wuhan and Hong Kong engaged in in-depth discussions on topics such as the current state of Hong Kong's digital economy, policies, and the transformation of mainland enterprises going overseas. Participants analyzed the situation of Hong Kong's digital economy, interpreted its development trends and opportunities, and provided valuable insights for the industrial layout and development direction of mainland enterprises in the post-pandemic period.

Since the beginning of 2023, various industries in Hong Kong have accelerated their recovery. Not only have sectors such as tourism and retail shown clear signs of improvement, but Hong Kong has also returned to the center of the international stage since the end of 2022. The Special Administrative Region government has introduced a series of new policies to promote the development of the financial industry, including declarations related to virtual assets, reforms of the Hong Kong Stock Exchange listing rules, and multiple initiatives to attract technology talent and innovative enterprises, demonstrating the determination of this international financial center to regain its glory.

With the continuous development of the global economic situation and technology, the digital economy and fintech have gradually become the high ground for global financial innovation and competition in the digital age. As a diverse, open, resilient, and vibrant international fintech hub, Hong Kong has always placed great importance on the development of fintech innovation. Fintech is profoundly changing business models and injecting new vitality into Hong Kong's fintech ecosystem.

At the meeting, the heads of relevant departments provided a comprehensive introduction to the development of the digital economy in Hong Kong and its policies, including an interpretation of innovation and entrepreneurship policies: fully promoting bank digitalization, deepening research on central bank digital currencies, leveraging the potential of data infrastructure, expanding the talent pool in financial technology, and using resource policies to support development.

In addition, the conference also focused on the policy declaration of virtual assets in Hong Kong, the regulatory framework, and the policy declaration for family offices. At the same time, it introduced Hong Kong's talent service windows, such as the Talent Scheme, the Investment Management Company Scheme, and the government funding support plan for promoting the development of the Web3 ecosystem in the 2023-2024 financial budget. The conference stated that the Hong Kong government welcomes and supports businesses to develop in Hong Kong, encourages companies to settle in Science Park and Cyberport, and supports enterprises to carry out R&D activities and recruit R&D personnel in Hong Kong.

Regarding the development of virtual assets in Hong Kong, the meeting shared: "Currently, there are two licensed virtual asset trading platforms in Hong Kong, and virtual asset ETFs were listed in Hong Kong in December 2022. Hong Kong has completed the plan to issue government green bonds using blockchain technology and conducted market consultations on the issuance of digital Hong Kong dollars and stablecoins, announcing a summary of the discussion paper on crypto assets and stablecoins in January 2023."

The conference also shared virtual asset cases in the cultural and artistic fields of Hong Kong: the cultural district located in West Kowloon brings together a comprehensive cultural venue that integrates world-class culture, art, trends, consumption, and mass entertainment, while renowned auction houses hold NFT art auctions in Hong Kong.

The attendees discussed topics such as the development trends of the digital economy in Hong Kong, investment opportunities, and the advantages of Hong Kong enterprises in the digital economy field. They also had a heated discussion on how the mainland can land in Hong Kong, promote industrial development, and ensure people's livelihood.

During the conference, representatives from relevant departments provided detailed introductions to Hong Kong's High-Quality Talent Pass Scheme, the Quality Migrant Admission Scheme, and the Talent Input Plan for the Mainland. They emphasized the responsibilities of the departments in charge of attracting talent and promoting investment, stating that they can provide one-stop services for enterprises and talents in Central China to invest and develop in Hong Kong. They also welcomed people from all sectors to take advantage of Hong Kong's low tax rates, internationalization, financial benefits, and other advantages to achieve great success in Hong Kong.

Currently, China is becoming an important driving force for the development of the global digital economy. As a key node of the Maritime Silk Road, Hong Kong serves as a critical passage connecting countries and regions along the "Belt and Road," having unique advantages in promoting cross-regional, cross-cultural, and cross-industry development, especially in the fields of big data, artificial intelligence, and smart cities, which hold great potential for the digital economy. The national "14th Five-Year" plan supports Hong Kong in building an international innovation and technology center, providing strong momentum for Hong Kong's development of the digital economy.

This event has built a good communication platform to deepen the close ties and promote joint innovation and development between Hong Kong and the mainland. It is believed that under the institutional advantages of "one country, two systems" and the new development pattern of the national dual circulation, Hong Kong will further strengthen its innovation efforts in the digital economy field, and will undoubtedly become a stronghold for the national digital economy development and an important link connecting the world.