Financial companies are urging the Hong Kong Monetary Authority to be more open-minded in giving new virtual bank licences as it would become difficult to attract international players to set up in the city.

One such company is Tencent-backed Airwallex, an Australian fintech that only last month acquired unicorn status but failed to make the final shortlist of eight. The company moved its headquarters from Melbourne to Hong Kong last year after the HKMA announced plans to issue virtual banking licences to promote fintech, offer customers a new kind of experience and improve the city’s financial competitiveness. Unicorns are companies with a valuation of at least US$1 billion.

“We are disappointed with the HKMA’s decision,” said Jack Zhang, co-founder and chief executive of Airwallex. “The HKMA’s licence requirements are too restrictive which could affect our ability to offer new banking products and services.”

He said that if the HKMA’s licensing regime remains inflexible “we might consider moving our core operations to other markets which are more friendly to new start-ups such as the US or UK”.

Read More.. Source South China Morning Post

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