Hong Kong's Financial Secretary Propels Web3 Expansion

The fusion of reality and virtual experiences is not only adding a new dimension to our leisure activities but is also unlocking significant economic value. This evolution is primarily driven by innovative technologies, with digital entertainment emerging as a potent economic sector, shared by Hong Kong's Financial Secretary CHAN Mo-po, Paul.

According to research, the global online entertainment market revenue is projected to soar from USD 184.2 billion in 2021 to an impressive USD 653.4 billion by 2027. This represents a compound annual growth rate of 21%, highlighting the vast potential and expansive growth space in the industry.

Last Friday, the "Digital Entertainment Leadership Forum" was inaugurated, emphasizing the theme "Entertainment Power UP! Web3 New Vision." The event witnessed participation from over 90 speakers from more than 30 countries and regions. They delved into how digital entertainment technologies in the Web3 era are revolutionizing various sectors, including art, education, sports, and daily life. 

Over the last ten years, streaming music, movies, social platforms, and mobile games have grown at an incredible rate because to the quick spread of mobile internet and smartphone technology. The third-generation internet (Web3) and blockchain technology are projected to be the two main drivers of the next wave of breakthrough development. NFTs, GameFi, Play to Earn, and "immersive entertainment" are areas where global entertainment giants are heavily investing resources.

Cyberport, a digital community in Hong Kong, recently hosted a three-day annual event, emphasizing the power of Web3 in the entertainment sector. The event showcased how local enterprises are leveraging Web3 technology in various life and business segments, enhancing efficiency and creating new economic value. For instance, a local startup collaborated with Marvel Entertainment to launch the world's first immersive interaction fitness adventure application, allowing users to exercise alongside comic characters.

The rapid development of Web3 is not confined to digital entertainment or virtual assets. The core blockchain technology of Web3, characterized by its decentralization, security, transparency, immutability, and cost-effectiveness, finds applications in finance, business, trade, supply chain management, and daily life.

The Hong Kong Special Administrative Region government is also actively adopting Web3 technologies.

To accelerate Web3 development, a budget of HKD 50 million was allocated to Cyberport this year to foster a thriving Web3 ecosystem. This includes attracting businesses and talent and organizing related educational and promotional events. Currently, Cyberport has amassed over 180 Web3-related technology companies, including unicorns and licensed virtual asset trading platforms, with over 20% of these enterprises originating from mainland China and overseas.

Financial Secretary Paul Chan recently emphasized the city's dual focus on green finance and Web3.0. Last year, Hong Kong's green finance initiatives reached a staggering USD 80 billion, accounting for one-third of Asia's total bond issuance. In a groundbreaking move, the city began tokenizing green bonds, underscoring its commitment to financial innovation. Furthermore, licenses for virtual assets were issued starting June 1st, with the Hong Kong Securities and Futures Commission overseeing regulation and sustainable growth in this sector.

Chief Executive Li Ka-chung also highlighted Hong Kong's potential in Web3.0 during the "Convergence of Finance, Innovating the Future" seminar. The city's commitment to Web3.0 was further solidified with the launch of the "Task Force on Promoting Web3 Development" on June 30th, 2023. Led by Paul Chan, the task force aims to promote the sustainable and responsible development of Web3 in Hong Kong. This initiative, combined with the establishment of the Hong Kong Web 3.0 Association and the release of a report on Web 3.0 technologies, showcases Hong Kong's proactive approach to embracing the Web3 era.

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