Cryptocurrency – 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.

Based on the 1,299 information articles analysed prior to now three months, Hong Kong FBI for the third quarter (Q3) of 2020 falls to a historic low of 93.5, a pointy decline of 8.1 index points (or 7.97%) from the second quarter. 12 months-on-year (YoY) change drops by 10.9 index points (or 10.4%), persevering with a downward development from the height in 2019Q2.

The financial downturn continues because of the ongoing COVID-19 pandemic in addition to the US-China commerce battle. Of the 6 sectors, the sub-index of Blockchain & Cryptoforeign money recorded the most important lower of 31.2 index points (or 31.5%) due to huge cryptocurrency scams in August, duping traders of greater than $4.5 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 Better Bay Space Cross-boundary Wealth Administration Join Pilot Scheme resulted in a reasonable improve within the sub-indices of Wealth Expertise and Credit score Expertise (WealthTech & CreditTech) and Supporters & Different Associated Enterprise, regardless of the financial downturn.

Concerning the HKU FinTech Index Sequence Challenge

The HKU FinTech Index Sequence Challenge introduces the Hong Kong FinTech Development Index (FGI) and the Hong Kong FinTech Buzz Index (FBI) to gauge native FinTech firms’ outlook on the trade 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 goal to offer info in a well timed method to trace the expansion and improvement of the monetary expertise trade in Hong Kong.

FGI is a yearly index with 4 sub-indices on Enterprise Surroundings, Enterprise Efficiency, Funding on R&D and Demand on Expertise. It displays Hong Kong FinTech sector’s forecast of the market state of affairs within the coming 12 months and an evaluation of the state of affairs within the present 12 months. FBI is a quarterly index representing a quantified sentiment of the native FinTech-related information articles in Chinese language prior to now three months. The index has a base value of 100 points which represents the sentiment of almost 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 Expertise (InsurTech), Wealth Administration and Credit score Expertise (WealthTech & CreditTech), Blockchain & Cryptoforeign money, E-Cost & Digital Banking, Regulatory Expertise (RegTech) & Cybersecurity and different associated enterprise together with AI and large knowledge.

The challenge is led by Prof. S.M. Yiu, Professor, Division of Laptop Science, HKU, and Prof. Philip Yu, Honorary Professor, Division of Laptop Science, HKU; Professor, Division of Arithmetic and Info Expertise, EdUHK, and funded by The College of Hong Kong – Normal 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 trade, together with representatives from FinTech Affiliation of Hong Kong, InvestHK, Cyberport, Hong Kong Science and Expertise Parks Company, and The Bank of East Asia, Restricted. The members present knowledgeable recommendation on the FinTech firms to be included within the grasp checklist for the annual survey to return the FinTech Development Index. In addition they advise the Challenge on index methodology.