Hong Kong, mainland China agree to one-stop sandbox platform allowing Greater Bay Area start-ups to develop cross-border fintech tools
- The move will give start-ups the chance to test their products in a controlled environment before they are allowed to take them to the mass market
- It will help promote cross-border investment and will encourage more capital flows within the bay area, a Hong Kong lawmaker says
The joint announcement did not mention a time frame for implementation, but a spokesman for the HKMA said the authorities would encourage fintech firms to get in touch to learn more about the initiatives.
“Without such a one-stop sandbox platform, the fintech companies would need to join sandbox platforms in Hong Kong and the mainland separately. The new approach will allow them to do their experiments faster and at a lower cost, and hence will definitely encourage companies to develop more cross-border financial tools,” said Christopher Cheung Wah-fung, lawmaker for the financial services sector of Hong Kong.
Since 2019, Beijing has introduced a flurry of measures to promote talent and capital flow within the bay area, which covers nine cities in Guangdong province as well as Hong Kong and Macau.
Eddie Yue Wai-man, chief executive of the HKMA, said the network link-up between Hong Kong’s de facto central bank and the PBOC will allow the bay area “to reinforce its leading fintech position and facilitate innovation in the region.”