Hong Kong hoping end of quarantine, US$1.3 million cash subsidy will bring fintech start-ups back to city, Cyberport executive says

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The government is accepting applications for the second round of its HK$10 million (US$1.3 million) ‘Proof-of-Concept’ cash-subsidy programme until the end of November

More start-up founders expected to return after scrapping of hotel quarantine, and more newcomers to apply for cash subsidies, Cyberport executive says

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Cyberport, the city’s technology hub, manages the ‘Proof-of-Concept’ cash-subsidy programme, which disbursed funds to 93 fintech projects last year. Photo: Handout

Enoch Yiu

Published: 8:30am, 3 Oct 2022

The relaxation of tough Covid-19 restrictions and a government cash subsidy programme will attract fintech start-up founders back to Hong Kong, according to a senior executive at Cyberport, the city’s technology hub.

Hong Kong scrapped its hotel quarantine requirements for travellers on September 26. The government also started accepting applications for the second round of its HK$10 million (US$1.3 million) “Proof-of-Concept” cash-subsidy programme for fintech start-ups the same day. Applications for the programme, which is managed by Cyberport and disbursed funds to 93 fintech projects last year, are open until the end of November.

“Some start-up founders left Hong Kong for other markets to develop their businesses during the coronavirus pandemic. But we have seen that some of them are starting to come back,” said Victor Yim, head of fintech at Cyberport.

“As the government has further relaxed its Covid-19 restrictions, we believe more start-up founders who have left will return to Hong Kong, and more newcomers will come to apply for our cash subsidy programme.”

Attracting and bringing back start-up founders and other talent to Hong Kong is seen as vital to its post-pandemic economic recovery. While Hong Kong has been slow to lift Covid-19 control measures, economies such as Singapore, Thailand and many other western markets have stolen a march on the city by lifting their restrictions late last year. As a result, more than 113,000 residents left Hong Kong in the 12 months to the end of June, according to government data.

But the city is catching up – besides removing hotel quarantine, it will further relax social distancing rules from next Thursday, such as lifting the cap on the number of people per table in restaurants from 8 to 12.