By George Ward
Promoting Technological Innovation
President Xi Jinping praised Andrew Chi-Chih Yao’s exceptional work in advancing scientific research and education in China, recognizing his significant impact in these fields. Yao, the Conflux network’s chief scientist, and a Tsinghua University professor, received high praise for his dedication and achievements over the past two decades, urging him to continue his valuable work.
The letter also emphasized exploring independent training models for innovative talents. Xi encouraged Yao to promote interdisciplinary and cutting-edge innovation to build a high-level talent training and technological innovation base.
The president reiterated his support for Yao’s endeavors to strengthen the country’s education and technology sectors. Yao’s work with the Conflux network represents a notable advancement in China’s blockchain technology.
Conflux operates as a layer-1 blockchain with a unique hybrid proof-of-work and proof-of-stake consensus mechanism. The Conflux Foundation, also known as the Shanghai Tree-Graph Blockchain Research Institute, oversees the network with support from the Shanghai Municipal People’s Government.
Strategic Importance of Blockchain
In April, the Chinese government launched a new public blockchain infrastructure platform led by Conflux. This platform aims to provide a foundational public blockchain for cross-border applications, supporting collaborative projects under the Belt and Road Initiative.
The developers emphasized the platform’s role in facilitating international collaboration through blockchain technology. Andrew Chi-Chih Yao, a renowned computer scientist, has been instrumental in driving the Conflux network’s development and success.
His work aligns with China’s broader goals of achieving technological self-reliance and fostering high-level technological advancements. By bridging the gap between academia and practical application, Yao’s efforts exemplify the potential of integrating innovative research with real-world solutions.
Hong Kong Eyes Crypto and Web3 Dominance
Meanwhile, Hong Kong is making significant strides in becoming a global leader in the crypto and Web3 sectors. Christopher Hui, Secretary for Financial Services and the Treasury, recently embarked on a European tour to showcase the city’s innovative technological advancements.
His mission was to highlight Hong Kong’s strategic position as a gateway to the Asian market and its favorable conditions for business and innovation. Hui attended two major forums during his tour: Money 20/20 in Amsterdam and the South Summit in Madrid.
At these events, he emphasized Hong Kong’s strengths, including its free capital movement, open business environment, competitive tax system, and diverse talent pool. These factors, he argued, make Hong Kong an attractive destination for businesses and startups looking to expand into Asia.
Many of Hui’s discussions focused on Hong Kong’s efforts to develop the Web3 and cryptocurrency domains. He detailed the region’s new regulations for virtual asset trading platforms, which include a licensing system and guidelines for businesses dealing in virtual assets, such as stablecoin issuers.
He stated that these measures aim to provide a secure and transparent environment for the growing digital asset industry. Hui also highlighted Hong Kong’s achievements in government bond financing. The city has issued two batches of tokenized green bonds.
The first batch, released last year, was the world’s first government-issued tokenized green bond. The second batch, issued earlier this year, was a multi-currency offering that raised $770 million, making it the world’s first multi-currency government green bond issuance in digital form.
Pioneering Asia’s crypto ETFs
Another crucial aspect of Hui’s tour was promoting international tax cooperation. He expressed concerns about Hong Kong’s inclusion on Portugal’s list of “obviously preferential tax jurisdictions.” This designation poses higher tax risks for Hong Kong companies operating in Portugal. Hui urged Portuguese authorities to remove Hong Kong from this list to foster better bilateral trade and investment relations.
Hui discussed the launch of the first batch of six virtual asset spot (Exchange-Traded Funds) ETFs in the region. These ETFs include an in-kind redemption mechanism, providing investors with greater flexibility.
Despite these features, Hong Kong’s ETFs have not yet matched the trading volumes seen in the United States. Yet, Animoca Brands Chairman Yat Siu remains confident about these ETFs’ positive future.