The Hong Kong Exchanges and Clearing signed a memorandum of understanding with Chinese financial giant Ping An Insurance to explore potential collaboration in fintech and data analytics to «enhance the region’s financial market ecosystem».
HKEX chief executive Charles Li was present in Shenzhen to sign the MoU which also placed a focus on fintech solutions across asset classes and the application of artificial intelligence to support connectivity of mainland Chinese, Hong Kong and international markets. It highlights the move as part of its «Technology Empowered» initiatives, one of three cornerstones of a a broader strategic plan to modernise the HKEX.
«Ping An Group and HKEX will seek cooperation to facilitate HKEX in realizing its new vision of connecting China with the rest of the word,» added Peter Ma Mingzhe, chairman of Ping An.
«One Connect»?
The statement’s claim to focus on «the application of data analytics and [AI]» may have a familiar ring when coupled with Ping An due to the firm recently sharing its potential ambitions to act as a vendor of its tech capabilities, rather than act as a direct competitor in digital banking. It also named Ping An’s fintech arm, «OneConnect» which recently applied and successfully received a digital banking license in Hong Kong.
Ping An’s OneConnect serves over 600 banks and 80 insurance companies in China and internationally, HKEX said in a statement.
According Ping An Insurance Group co-chief executive Jessica Tan Sin-yin, the firm applied through the fintech arm and not its financial entities deliberately as it was not particularly interested in competing in a crowded Hong Kong market. Instead, it would act as a provider of digital banking capabilities after an initial period of direct lending, she said.
