Hong Kong Immigration perspective on doing business in Hong Kong: According to Hong Kong media reports, the Hong Kong government has established a 300 million HKD "Youth Development Fund" to assist young people in starting businesses. Secretary for Financial Services and the Treasury K.C. Chan stated yesterday (the 3rd) at a youth entrepreneurship forum that the expansion of the e-commerce scale in mainland China has changed people's lifestyles. The Hong Kong government is highly interested in developing financial technology (FinTech) and will fully support youth entrepreneurship.
K.C. Chan stated that as computer costs decline, the data foundations relied upon by new technologies—such as data transmission, data analysis, data storage, cloud computing, big data, and mobile payments—are changing people's lifestyles. In mainland China, third-party payments connect small businesses and consumers, generating millions of small online transactions daily.
On the other hand, with the popularization of e-commerce and mobile payments, enterprises or associations in remote locations or of smaller scale are also able to reach target customers at a low cost.
"But this is only the beginning," K.C. Chan added. Online payment companies can gain insights into consumer behavior by collecting data on merchants and consumers, and subsequently provide other services such as banking and asset management, presenting huge opportunities. Even if traditional financial services enter the fray, online payment companies that possess big data still hold the advantage in understanding customers. Traditional banks can also transition from behind-the-scenes to the forefront, serving customers through personalized services. In this regard, Hong Kong can partner with institutions like the Hong Kong Science and Technology Parks and Cyberport to jointly develop financial technology.
Peter Wong, Deputy Chairman and Chief Executive of HSBC, who also attended the event, stated that the Qianhai Free Trade Zone has advanced facilities and an excellent environment. Coupled with systems for logistics and finance that are similar to Hong Kong's, and the current training of arbitrators to handle commercial disputes, he believes it can foster many innovative enterprises.
However, he emphasized that Hong Kong does not need to worry about competition with Qianhai, because the world is always moving forward. For example, HSBC once dominated the local banking business in Hong Kong, and while there are now over 200 rival banks and financial institutions in the city, HSBC continues to perform exceptionally well, as evidenced by its recently announced interim results.
He stated that competition is also an opportunity for complementary advantages. Hong Kong's own market is very small; rather than worrying about competition from Shanghai, Qianhai, or the Pearl River Delta, it is better to consider how to cooperate and grow the market share together.