Hong Kong Digital Finance Strategy Mapped as City Backs China’s Financial Ambitions

Hong Kong digital finance strategy was in focus at a forum convened by the Chief Executive’s Policy Unit to discuss how the city can support China’s push to become a financial powerhouse by advancing digital finance use cases, balancing regulation with development and linking more closely with mainland infrastructure.

The forum brought together participants from Hong Kong and mainland China, including researchers from the People’s Bank of China’s research institute, members of the city’s Web3 task force and former Hong Kong Monetary Authority chief Norman Chan.

Policy Unit head Stephen Wong said Hong Kong could act as a firewall, testbed and connector via pilots such as digital currencies, stablecoins, tokenised deposits and cross-border digital yuan payments, after China’s securities regulator tightened oversight of offshore tokenised ABS issuance linked to onshore assets.