A new survey of fintech executives has deemed Hong Kong as uncompetitive compared to other global financial centres
The survey, conducted by Google and financial consultant Quinlan & Associates, interviewed 126 executives at private fintechs. Around 60% of the respondents affirmed that Hong Kong lacked competitiveness. The main reasons mentioned were stringent regulation, high set-up costs and a “severe talent gap”.
Hong Kong’s severe Covid-19 quarantine measures have also been criticised by various representatives of the financial industry. For instance, Hong Kong’s lobby group for fund managers urged to open up to the rest of the world and restore the city’s status as an international financial centre. Moreover, the Hong Kong Investment Funds Association released research that showed asset managers are struggling to fill global roles because of the failure to attract ex-pats.
Due to the imposition of national security laws in Hong Kong, there was an increase in migration. Over 113,000 residents left Hong Kong in the last 12 months, which caused a skills shortage and brain drain. Therefore, the Hong Kong Monetary Authority has recently issued a plan designed to boost the fintech market with steps to develop and attract fintech talent.