Hong Kong’s FinTech market is projected to grow by nearly a third annually over the next seven years, driven by rapid digitalization, advancements in payment solutions, and AI and blockchain adoption.
According to a report by InvestHK, the government agency responsible for foreign direct investment, Hong Kong had over 1,100 registered FinTech companies as of July 2024. The sector is expected to reach $606 billion by 2032, with an average annual growth rate of 28.5%.
The most prominent segments of Hong Kong’s FinTech industry include:
- WealthTech (198);
- blockchain solutions (175);
- payments and financial transfers (122);
- digital assets and cryptocurrencies (111).
The report highlights two sectors that showed significant growth in the past two years — blockchain companies, which increased by 250%, and the digital assets and cryptocurrency sector, which grew by 30%.
InvestHK, in collaboration with other Hong Kong government agencies, surveyed 130 FinTech companies operating in the region. The key challenges identified were a shortage of talent (58.8%) and limited access to capital (43.9%). Despite these concerns, Hong Kong’s FinTech industry continues to attract substantial investments — $3.8 billion was raised in H1 2024 across 438 deals. Major funding rounds were conducted by HashKey Group and LongBridge Security, each raising $100 million.
The sector is a major employer, with 25,000 professionals working in Hong Kong’s FinTech firms, half of whom are employed by local unicorn startups. The region remains a hotspot for investors and developers due to its low taxes, business-friendly policies, and extensive government support, including grants, tax incentives, and development programs.
The report also notes that in 2024, Hong Kong launched spot ETFs based on Bitcoin and Ethereum and introduced a sandbox for stablecoin issuers. The region’s progressive regulatory environment for digital assets strengthens its position as one of Asia’s leading Web3 tech hubs.
