Fintech companies from mainland China are increasingly choosing Hong Kong as the base for their headquarters, attracted by the city’s capital accessibility and a strong talent pool.
These firms are leveraging Hong Kong’s strategic position to expand their operations into ASEAN markets.
KN Group, a non-traditional financial data provider, has established its headquarters in the city, renting 8,000 sq ft in Taikoo Place and employing between 80 to 100 staff.
Founded in 2014, the company utilizes an artificial intelligence risk control model to assess consumer behavior, focusing on individuals underserved by traditional financial services.
The firm plans to transfer some of its domestic risk and research-and-development teams from the mainland to Hong Kong while recruiting more local talent.
The company highlighted the support received from the Hong Kong government, which it noted played a key role in its decision to relocate.
The Office for Attracting Strategic Enterprises (OASES), tasked with drawing firms in critical sectors, provided assistance in local recruitment and visa facilitation for mainland staff. KN Group has also partnered with local universities on data research initiatives.
Hong Kong’s government has pinpointed four priority industries—health technology, artificial intelligence and data science, financial technology, and advanced manufacturing and new-energy technology—as part of its development strategy.
More than 10 companies from these sectors are set to establish operations in the city following a government-led initiative announced in early October.
KN Group considered multiple Southeast Asian locations, including Bangkok and Singapore, before selecting Hong Kong.
The firm cited the city’s competitive edge in connecting the technological expertise of mainland Chinese companies with Southeast Asian markets and the availability of capital to support business growth.
City leader John Lee Ka-chiu has set a target for OASES to attract at least 350 strategic enterprises by 2025 to bolster Hong Kong’s position as a regional hub.
KN Group, which has expanded its reach to Indonesia, the Philippines, Thailand, Pakistan, and Mexico since 2019, plans to enter 15 to 20 additional countries within the next five years. The company aims to foster greater collaboration between Hong Kong and ASEAN in the ‘AI+Finance’ sector.
KN Group’s AI-driven credit-risk evaluation and risk-monitoring processes involve analyzing diverse data sources, including transaction history, social media activity, and mobile phone usage, to assess borrowers’ creditworthiness better.
This approach, supported by partnerships with local banks and licensed financial institutions, has helped provide credit access to underserved populations.