Hong Kong FinTech in a Nutshell
Positives: Hong Kong is a huge, established financial center with a vibrant extended ecosystem, including FinTech disruptors and world-leading crypto exchanges. Securities regulators (HKMA & SFC) are strong champions FinTech innovation with a focus on “institutional grade” controls and accountability. Access to China market and resources. Low taxes, clear regulatory environment, top tier advisors, truly international.
Negatives: Securities regulations favor incumbents and large scale firms in some fundamental ways (eg advantage for intermediaries with established “whitelist” of accredited / professional investors). Limited developer talent pool, and decreasing talent pool for fluent English language resources. Challenges in attracting startup capital at favorable valuations. High costs. The three elephants in the room:
- “Two Systems” no longer offers the same protections under the Basic Law. Recent National Security and Extradition laws create significant risk for people & organizations that speak, act or associate in ways the government disapproves. Nobody is quite sure where the boundaries are.
- COVID policies are challenging to businesses, families, and likely visitors. “Brain Drain” as good people leave.
- China access isn’t as appealing as it used to be. The economy is increasingly sealed off and otherwise struggling. Business travel remains difficult even from Hong Kong. It is still a huge market, but it’s a far more challenging environment.
Steve Stanton in Hong Kong
Steve arrived in 2010 after 2 years in Dubai and a decade in New York City. Steve had a dozen years of success in Hong Kong including banking, startups and even athletics as head coach for two champion dragon boat teams.
He joined Morgan Stanley in 2010 as Risk Officer and Chief Admin Officer for Morgan Stanley’s Finance division in Asia Pacific ex-Japan covering Controllers, Tax and Treasury. He was responsible for operational risk governance, information security, business continuity planning, training, events and ad hoc initiatives.
Steve established Deep Water Management consultancy in 2016. His clients brought him “in house” as a key member of their management teams. In 2017, Steve was interim COO of the Franchise Management Company.
He joined Lecker Labs as CEO in early 2018 to support the launch of their flagship Yomee product line. He won several pitch competitions including “Startup Launchpad” by Global Sources, the Cyberport Incubation Program, and “Startup Express” by Hong Kong Trade & Development Council.
Steve became COO of Loopnest and Up Blockchain. He worked with top tier advisors to launch the “tokenized” HCS Whisky Fund and accelerate the blockchain-ification of the securities industry.
Steve stepped back from startup life for the COVID era. He continued to work on consulting client projects part time. But his main priority was giving his young son the most normal life possible in spite of insane local regulations (including the closure of all beaches, playgrounds, schools, playgroups and total ban on groups of more than 2 people for the first five months of 2022).
Check Out Steve’s past (and future!) in America:
