Mainland Chinese fintech companies are increasingly setting up headquarters in Hong Kong to tap into the lucrative ASEAN markets. Notably, KN Group, founded in 2014, has rented an 8,000 square foot office in Taikoo Place and is expected to employ between 80 to 100 staff members. The company leverages artificial intelligence for risk control and consumer behavior analysis, reflecting a broader trend among fintech firms to incorporate advanced technology into their operations [d167a3d9].
Support from Hong Kong's Office for Attracting Strategic Enterprises (OASES) has been instrumental in this expansion, providing assistance with local recruitment and visa processes. OASES aims to attract 350 strategic enterprises by 2025, highlighting the government's commitment to fostering a vibrant fintech ecosystem [d167a3d9].
In a recent development, seventeen companies have signed agreements to establish a presence in Hong Kong, bringing the total number of new firms to over 60. These companies span various sectors, including AI, fintech, and health tech, indicating a robust interest in the region despite political uncertainties surrounding the potential return of former President Trump [030022c9].
Financial Secretary Paul Chan Mo-po emphasized Hong Kong's role as a growth springboard, noting that the total investment from these new firms exceeds HK$42 billion, which is expected to create over 17,000 jobs. For instance, Felix Zhang of Pudu Robotics plans to invest HK$1 billion, creating 100 jobs, while Xunfei Healthcare will invest HK$400 million, also generating 100 jobs [030022c9].
Since 2019, KN Group has expanded its operations into several countries, including Indonesia, the Philippines, Thailand, Pakistan, and Mexico, with plans to enter an additional 15 to 20 countries over the next five years. The decision to establish a presence in Hong Kong was influenced by the city's open financial policies and its closer ties with ASEAN countries, which are seen as key factors for successful market entry [d167a3d9].
In parallel, Hong Kong's fintech landscape is evolving as local firms like WeLab and OneDegree Group also target Southeast Asia's banking and insurance sectors. WeLab is currently competing for a virtual banking license in Thailand, while OneDegree Group is collaborating with firms in Malaysia and Thailand to enhance its technological capabilities. These initiatives are part of a broader strategy led by the Financial Services Development Council (FSDC), which aims to promote Hong Kong's business interests in Southeast Asia and the Middle East [10ce3826].
As Hong Kong continues to position itself as a gateway for fintech companies looking to enter ASEAN markets, the integration of local and mainland Chinese firms could lead to enhanced financial services and greater economic cooperation in the region [10ce3826][d167a3d9].