HONG KONG, Nov. 29, 2023 /PRNewswire/ — 2023 marks the 20th anniversary of the Shanghai–Hong Kong collaboration mechanism, a pivotal milestone celebrating two decades of ongoing exchange and significant achievements. To further bolster comprehensive data exchange and collaboration between Shanghai and Hong Kong, the Global Data Ecosystem Conference 2023 (GDEC 2023) included a dedicated Hong Kong venue from 28 to 29 November. With the theme ‘Data World, Connected Future – Data Enabling the New Engine for the Development of the Digital Economy in Hong Kong and Shanghai‘, the conference included a forum, a symposium for data service providers, and a series of corporate networking events. These sessions concentrated on the circulation of data assets, as well as advancements in Web3.0. The event significantly strengthened the digital economy partnership between the two cities, expanding and intensifying the Shanghai–Hong Kong connection and collaboratively fostering a high degree of openness in the data asset market.

Under the guidance of the Shanghai Municipal Commission of Economy and Informatization (SMCEI), the Hong Kong conference was co-organized by Hong Kong Cyberport, Shanghai Data Exchange, Shanghai Data Service Provider Association, and the Shanghai-Hong Kong Digital Ecosystem Exchange Center, and hosted by the B4B Big Data Business Application Challenge, with additional support provided by Shanghai Duan and Duan Law Firm (Duan & Duan) and TopEase.

The Hong Kong Chamber of Data & Digital Commerce Organizing Committee was Established, Working in conjunction with Its Counterpart in Shanghai to Co-create a New Data Ecosystem

In recent years, Hong Kong has championed the growth of its digital economy, with extensive research in data infrastructure, cross-border data flow, enterprise digital transformation, and human resource support. Matthew Chan, Chair of the Hong Kong Chamber of Data & Digital Commerce Organizing Committee, noted that the city’s government has set up the Digital Economy Development Committee and the Third Generation Internet (Web3.0) Development Task Force, and is planning to establish a Digital Policy Office, all aimed at advancing industry digitalization and the digital sector’s industrial growth.

During GDEC 2023, the Hong Kong Chamber of Data & Digital Commerce Organizing Committee was formally established. It marked its initiation by signing a strategic cooperation agreement with Shanghai Data Service Provider Association, aimed at jointly developing the Shanghai–Hong Kong data ecosystem. The agreement outlines a collaborative effort in launching new data products, building a comprehensive data ecosystem, and supporting third-party service providers, with a focus on fostering mutual empowerment and the growth of data assets in both regions.

“Data will become the core of future decision-making, and digital transformation is now an irreversible trend in economic and social development,” stated Herbert Chia, a Board member of the Hong Kong Science and Technology Parks Corporation. He highlighted the critical need to develop the data asset market, establish strong digital governance, and improve data technology systems. These efforts are directed toward enabling the efficient circulation of data assets, with the aim of boosting economic growth and development.

Establishing the Shanghai-Hong Kong Data Corridor: Advancing New Paradigms in Data Exchange and Collaborative Efforts

Shanghai and Hong Kong are jointly concentrating their efforts on developing the data factor market, further enhancing their comprehensive exchange and cooperation. Leveraging Shanghai’s proficiency in data exchange, initiatives are in progress to extend the utilization of open data in Hong Kong while facilitating the listing and trading of data products originating in the city.

In April 2023, Shanghai Data Exchange launched the International Board to pioneer mechanisms for two-way cross-border data flow, enhancing its data exchange compliance services and ensuring secure transfer of data products across borders. Zhang Jian, Deputy General Manager of the Market Development Department at Shanghai Data Exchange, highlighted Shanghai’s leadership in data policy research, the development of an infrastructure for the circulation of data, and the building of a data ecosystem. He also underscored the unique characteristics of Hong Kong’s data factor market, particularly in the realm of data factor development, which offers significant potential. Looking ahead, the two cities will collaborate to capitalize on each other’s strengths to establish an international hub and facilitate cross-border flow of data products.

During the conference, four Hong Kong-based firms – Albacastor Technology, MOVA, Olawealth, and Rightpick – submitted their applications to list data products on the Shanghai Data Exchange’s International Board. Their offerings encompass a range of sectors, including environmental, real estate, and public sentiment analysis.

During the event, several companies showcased how the trading and exchange of data products can drive innovation in the real economy. Deng Cong, Vice President of Dun & Bradstreet Business overseeing the Hong Kong market, presented the company’s portfolio spanning precision marketing, commercial credit, supply chain, compliance, and inclusive finance. He used case studies to exemplify how global data can be effectively integrated with local insights. Lu Zhongming, Chief Data Officer of ChinaScope, introduced the HIST model, built on industrial and supply chain relationship maps, and news co-occurrence graphs, highlighting its capability to process high-dimensional data and the intrinsic value of data mining. Wang Yanfei, Deputy General Manager at TopEase, discussed the pivotal role of data governance in global trade, focusing on digitizing trade processes and revealing the latent potential of foreign trade data to transform detailed analytics into actionable insights for capital investment. Sun Xianjie, Co-founder and CEO of Harb Data, explored the integration of retail data into algorithmic solutions for businesses, optimizing their decision-making processes. He pointed out the opportunities in commercializing retail data for developing targeted marketing initiatives and broadening the market reach of specialized brands.

Driving Financial Innovation with Data, Exploring Innovative Applications of Data Factor

Hong Kong and Shanghai, as international financial centers, have tremendous potential for cooperation. In August this year, Ministry of Finance of the People’s Republic of China issued the the Interim Provisions on Accounting Treatment of Enterprise Data Resources. These regulations provide clarity on how companies should include data assets in their financial statements and the methods for assessing the value of these data assets. Gao Yaping, Equity Partner, Head of Data Compliance Business at Duan & Duan, extrapolated on her view that for Hong Kong companies, incorporating data assets into their financial statements is of key importance. She notes the significant opportunity presented by the mainland Chinese market, suggesting that Hong Kong companies can leverage this market as a starting point for global expansion, particularly through the listing and trading of data-related products. In the current environment where data assets are being used in innovative ways, not only the primary players in the data market (suppliers and demanders of data) but also third-party service providers involved in compliance, quality, and valuation assessments of data, are poised to encounter new growth and business opportunities.

In the rapidly evolving landscape of financial technologies, marked by advancements in Web3.0 and virtual assets, Hong Kong is positioning itself as a key global hub for virtual asset management. The city is actively exploring innovative applications and continuously refining its regulatory framework to keep pace with these developments. Invest Hong Kong’s data shows that the city currently hosts over 800 financial technology companies and boasts a burgeoning ecosystem of more than 5,000 fintech startups. Matthew Chan, the Organizing Committee’s Chair, advises that Hong Kong capitalize on its established financial sector prowess, seizing the opportunity to incorporate data assets into financial reporting, with the goal of expanding the global footprint of its data assets.