Hong Kong FinTech Buzz Index falls to historic low in 2020Q3

Hong Kong FinTech Buzz Index falls to historic low in 2020Q3

Hong Kong FinTech Buzz Index (FBI) is a quarterly index which represents a quantified sentiment of the native FinTech-related information articles in native Chinese language information media.

In keeping with the 1,299 information articles analysed previously three months, Hong Kong FBI for the third quarter (Q3) of 2020 falls to a historic low of 93.5, a pointy decline of eight.1 index factors (or 7.97%) from the second quarter. 12 months-on-year (YoY) change drops by 10.9 index factors (or 10.four%), persevering with a downward development from the height in 2019Q2.

Interval

InsurTech

WealthTech & CreditTech

Blockchain & Cryptocurrency

Fee & Digital Banking

RegTech & Cybersecurity

Supporters & Others

Q1, 2019

104.eight

104.9

104.zero

105.zero

91.5

106.1

Q2, 2019

106.zero

107.7

108.7

105.four

73.2

109.6

Q3, 2019

99.2

104.6

105.three

109.three

90.9

106.5

This autumn, 2019

98.9

100.eight

103.7

106.four

79.9

104.1

Q1, 2020

101.5

101.1

102.6

104.zero

94.1

101.9

Q2, 2020

104.2

103.1

99.1

102.9

98.6

100.6

Q3, 2020

100.eight

107.four

67.9

102.7

80.7

105.four

The financial downturn continues as a result of ongoing COVID-19 pandemic in addition to the US-China commerce struggle. Of the 6 sectors, the sub-index of Blockchain & Cryptocurrency recorded the biggest lower of 31.2 index factors (or 31.5%) due to large cryptocurrency scams in August, duping traders of greater than $four.5 million. One of many cryptocurrency scams involving the vulnerability in Bitcoin ATMs additionally severely affected the RegTech & Cybersecurity sub-index. The announcement with extra particulars on the Larger Bay Space Cross-boundary Wealth Administration Join Pilot Scheme resulted in a average enhance within the sub-indices of Wealth Know-how and Credit score Know-how (WealthTech & CreditTech) and Supporters & Different Associated Enterprise, regardless of the financial downturn.

In regards to the HKU FinTech Index Sequence Undertaking

The HKU FinTech Index Sequence Undertaking introduces the Hong Kong FinTech Development Index (FGI) and the Hong Kong FinTech Buzz Index (FBI) to gauge native FinTech firms’ outlook on the business and the final sentiment on the sector as reported by native press. It’s the first within the area to offer index indicators on the event of the sector, with an purpose to offer data in a well timed method to trace the expansion and improvement of the monetary know-how business in Hong Kong.

FGI is a yearly index with 4 sub-indices on Enterprise Atmosphere, Enterprise Efficiency, Funding on R&D and Demand on Expertise. It displays Hong Kong FinTech sector’s forecast of the market scenario within the coming yr and an evaluation of the scenario within the present yr. FBI is a quarterly index representing a quantified sentiment of the native FinTech-related information articles in Chinese language previously three months. The index has a base worth of 100 factors which represents the sentiment of practically 10Okay FinTech associated information articles in main native information media shops in 2016 and 2017. FBI is additional damaged down into six sectors: Insurance coverage Know-how (InsurTech), Wealth Administration and Credit score Know-how (WealthTech & CreditTech), Blockchain & Cryptocurrency, E-Fee & Digital Banking, Regulatory Know-how (RegTech) & Cybersecurity and different associated enterprise together with AI and massive information.

The challenge is led by Prof. S.M. Yiu, Professor, Division of Pc Science, HKU, and Prof. Philip Yu, Honorary Professor, Division of Pc Science, HKU; Professor, Division of Arithmetic and Info Know-how, EdUHK, and funded by The College of Hong Kong – Customary Chartered Hong Kong 150th Anniversary Neighborhood Basis FinTech Academy.

To supply skilled perception, the Advisory Board is established, comprising professionals from the College of Hong Kong and the native FinTech business, together with representatives from FinTech Affiliation of Hong Kong, InvestHK, Cyberport, Hong Kong Science and Know-how Parks Company, and The Financial institution of East Asia, Restricted. The members present skilled recommendation on the FinTech firms to be included within the grasp record for the annual survey to return the FinTech Development Index. In addition they advise the Undertaking on index methodology.

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