Can China revive the dwindling Hong Kong market?


The fintech boom in China could help re boot the finance economy in Hong Kong and make the market dynamic, says expert.

According to Robyn Mak, former research associate at not-for-profit organisation, Asia Society, the world’s most valuable fintech start-ups in China will create higher valuations from public market investors and drive  neighbouring Hong Kong markets back into fruition.

With a combined worth of close to 90 billion, Chinese start-ups Lufax, Ant Financial and Zhongan Online P&C Insurance continue to attract interest from venture capital backers and have now expressed interest in listing in Hong Kong.

“They would be a huge victory for Hong Kong, which prides itself as China’s gatway to global capital markets,” Mak said.

“Investors and analysts there have a better understanding of the sector.”

Mak said that the listing of major Chinese fintechs in Hong Kong would help transition the territory from ‘old-school’ finance to digitisation.

“The bigger prize for Hong Kong would be a shift…towards faster-growing, more innovative companies. Snagging two or three fintech stars may spur others to follow,” she said.

“There is…a new wave of tech upstarts with few or no global competitors. Hong Kong investors would have a clearer understanding of these businesses than those stateside.”