Hong Kong to Pioneer Web3 Financing Platform for SMEs in the Greater Bay Area

The Chinese National People's Congress (NPC) delegate Wu Jiezhuang has submitted a proposal for the establishment of an international Web3 financing platform specifically for Small and Medium Enterprises (SMEs) in the Guangdong-Hong Kong-Macao Greater Bay Area, as reported by the Hong Kong TKWW. This innovative step aims to accelerate the international expansion of Chinese niche, specialized, and innovative SMEs, while fostering a market centered around green, tech, and innovation sectors.

The proposal comes at a crucial time, as Hong Kong is vigorously supporting the development of the third generation of the internet, known as Web3. Establishing an international innovative financing platform based on Web3 technology will not only leverage Hong Kong's traditional financial strengths but will also capitalize on its unique position as a global digital technology hub. The platform’s goal is to become a benchmark for providing innovative financing models and international application scenarios for niche, specialized, and innovative SMEs.

Wu Jiezhuang suggests that, in order to make this vision a reality, relevant national ministries should lead the charge by researching and developing precise support policies, and drafting a roadmap for the practical application of innovative financing services and urban application scenarios. This includes the creation of action plans for nurturing and incubating potential "little giant" SMEs and integrating projects that foster SME cultivation, investment, innovation, and management cooperation into national key projects.

In line with the proposal, differentiated strategies and innovative investment and financing methods should be formulated to cater to the varied business environments across different countries and regions. By employing a range of financial tools such as equity, loans, bonds, and leasing, and by establishing investment or cooperation funds for equity investment, mergers and acquisitions, and debt involvement, sustainable development of overseas investment and financing projects can be achieved.

Furthermore, Wu calls for the exploration of cross-border trusted data exchange technologies and tools to interconnect the international innovative financing platform with the national service platform for niche, specialized, and innovative SMEs. This would ensure interoperability and establish a one-stop service system for technology insights, digital transformation, financial support, and scenario development, moving towards a standardized and regulated environment.

Wu Jiezhuang emphasized Hong Kong's extensive experience in infrastructure construction, shipping, logistics, and investment financing. Compared to mainland operations, Hong Kong's management level and commercial operation mode are more mature, international, and market-oriented. By drawing on the Public-Private Partnership (PPP) model and leveraging 'Blockchain+' strategies, significant areas such as the Belt and Road Initiative could raise necessary funds through compliant digital asset trading platforms based in Hong Kong.

This proposal, if accepted, could position Hong Kong as a pioneering city in the integration of Web3 technologies for international SME cooperation, further highlighting the region's commitment to embracing the future of digital finance.