Hong Kong to introduce fintech subsidies

The Hong Kong government aims to establish financial incentives to combat skills shortage, especially in the fintech sector

Hong Kong fintech

Hong Kong to introduce fintech subsidies. Source: unsplash.com

As reported by Finextra, the Hong Kong authorities are going to address the talent shortage within the fintech industry and develop much-needed local ESG talent. 

Financial Services and Treasury minister Christopher Hui Ching-yu said that planned initiatives include up to HK$10m ($1.3m) in cash subsidies for fintech proofs-of-concept. Besides, the government plans easing immigration rules for qualified individuals. 

A recent survey conducted by Google revealed that 64% of fintechs in Hong Kong were facing a “severe talent gap”. Thus, 80% of respondents said they would welcome more supportive policies from the government. 

Furthermore, a number of industry associations, including the Hong Kong Investment Funds Association, and lobby groups have complained that Hong Kong has become uncompetitive as an international financial hub. The main reasons are the tightening of immigration rules and stringent Covid-19 quarantine measures. 

The new round of the Fintech Proof-of-Concept subsidy scheme starts accepting applications on September 10. 

Each approved project will receive a cash subsidy ranging from HK$150,000 to HK$400,000.  The government will encourage fintech start-ups for developing innovative financial products or services for banks, insurers or wealth management companies in Hong Kong and the Greater Bay Area.

Last year, 90 projects received grants totalling HK$10 million.

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