In a significant move to cement its position as a global financial hub, the Hong Kong Special Administrative Region (HKSAR) government on Monday unveiled a policy statement on the responsible application of artificial intelligence (AI) in the financial market. The initiative aims to spur the development of financial technology (fintech) while effectively managing associated risks.
The policy, announced by Christopher Hui, Secretary for Financial Services and the Treasury, outlines a dual-track approach. It seeks to promote AI adoption within the financial services sector while simultaneously addressing potential challenges such as cybersecurity threats, data privacy concerns, and the protection of intellectual property rights.
“The HKSAR government will work hand in hand with financial regulators and industry players to foster a healthy and sustainable market environment,” Hui stated. “This collaborative effort will facilitate financial institutions to seize new opportunities and adopt AI in a responsible manner.”
The Hong Kong Monetary Authority (HKMA) echoed this commitment by vowing to accelerate asset tokenization, promote cross-boundary digital payments, and empower banks to embrace fintech solutions. The HKMA announced new cross-border partnerships with the Central Bank of Brazil and the Bank of Thailand to explore tokenization use cases under Project Ensemble, supporting tokenization and central bank digital currency initiatives.
In an effort to enhance payment systems, the HKMA is looking to pilot a linkage between Hong Kong’s Faster Payment System and the Chinese mainland’s Internet Banking Payment System. This initiative aims to streamline cross-boundary transactions and facilitate smoother financial interactions between Hong Kong and the mainland.
Adding to the fintech momentum, Hong Kong launched Fintech Connect, the city’s first cross-sectoral sourcing platform. Designed to connect financial institutions with fintech solution providers, this platform is expected to promote precise matching of supply and demand for fintech services, spurring innovation and collaboration within the industry.
As an international financial center, Hong Kong remains open and inclusive towards the application of AI in the financial market. The government’s proactive approach demonstrates its commitment to balancing innovation with regulation, ensuring that technological advancements contribute positively to the financial sector while safeguarding against potential risks.
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Hong Kong rolls out policy statement, moves to nurture fintech
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