Hong Kong fintech fundraising slows down to a trickle as China steals the show in the first half
Hong Kong fintech start-ups raise US$23 million in first half versus US$17 billion garnered by Chinese firms
Investments into Hong Kong-based fintech companies fell 84 per cent in the first half even as funding in other Asian markets including China rose manifold, according to New York-listed consulting firm Accenture.
With only US$23 million raised by Hong Kong fintechs in the first half compared with US$148 million a year earlier, the growing trend of fintech investments in the city could be snapped, which has risen every year since 2014 and reached US$546 million last year.
As part of the plans to turn the city into a fintech hub the Hong Kong Monetary Authority last September said it would issue the first virtual bank licence for lenders to operate purely online without a branch.
Industry watchers however were quick to point out that the decline in fintech investments was likely to be temporary.
“The fall was due to many Hong Kong start-ups having already raised funds last year,” said Joseph Tong Tang, chairman of Morton Securities, who also invests in fintech start-ups, adding that the lull could be due to the fact that the start-ups are focusing on business development.