Companies backed by Chinese tech giants are granted virtual banking licenses in Hong Kong

The Hong Kong Monetary Authority (HKMA) today granted four new virtual banking licenses to local companies backed by Chinese tech and insurance giants.

Ant SME Services (Hong Kong) Limited, Infinium Limited, Insight Fintech HK Limited, and Ping An OneConnect Company Limited, backed by Ant Financial, Tencent, Xiaomi and Ping An respectively, plan to launch services in Hong Kong within six to nine months.

“We are pleased to grant four more virtual banking licenses today,” said Chief Executive of the HKMA Norman Chan. HKMA has already issued four virtual banking licenses to local companies backed by the Bank of China, JD, Ctrip and Chinese online insurer ZhongAn.

Virtual banks will facilitate financial innovation and enhance customer experience and financial inclusion, Chan said. The regulatory body said it will closely monitor these virtual banks and conduct a comprehensive assessment and evaluation in the future.

Editor: Nadine Freischlad