Hong Kong Regtech and Green Finance
Greenwashing has been a key focus for Hong Kong regulators. Reporting and disclosure practices are often insufficient, the presentation and measurement of environmental data is still inconsistent, and climate risk is often excluded or simply miscalculated by firms. These challenges damage investor confidence and harm the development of green finance.
The Hong Kong Fintech Association has launched a Green Finance and Regulatory technology White Paper, with the Law, Innovation, Technology and Entrepreneurship Lab at HKU.
The Hong Kong Monetary Authority is promoting the adoption of regtech innovation. The paper highlights four regtech applications to help to improve the development of green finance:
- Social media, eco-labelling and blockchain technologies to combat greenwashing
- Blockchain for land registration to decrease the risks of green investments
- Data technologies, such as cloud and machine learning, for the disclosure, comparison and monitoring of climate risk and environmental data
- Data technologies and statistical tools, such as scenario analysis, simulation and stress testing, to enhance risk management and governance frameworks
U.S. fintech companies that provide these technologies to solve some of the above-mentioned problems for the Hong Kong Green Finance system will find a welcome market for their services in Hong Kong.
For more information about the green finance/fintech market in Hong Kong, please contact:
U.S. Commercial Service, Hong Kong
Email: Office.Hongkong@trade.gov