Core Insights - The Hong Kong Monetary Authority (HKMA) and Hong Kong Cyberport Management Company announced the participant list for the second phase of the Generative AI (GenA.I.) sandbox, marking a shift from exploring AI possibilities to promoting safe and reliable AI applications [1][2] - A total of 27 use cases from 20 banks and 14 technology partners were invited to participate in the second phase, selected from over 60 proposals based on innovation level, technical complexity, and potential industry value [1] - The second phase focuses on enhancing AI governance, with several use cases employing AI-to-AI strategies for automated quality detection of AI-generated content, aiming to improve system accuracy and consistency [1] - The sandbox also serves as a testing ground for developing innovative defense mechanisms against deepfake fraud, with participants using AI for simulated attack and defense testing to strengthen systems against sophisticated digital scams [1] - HKMA's Vice President emphasized that the second phase of the GenA.I. sandbox represents a significant step towards safer and more robust AI applications, reflecting the transformative potential of AI in the industry [1] Industry Developments - Participants will begin accessing the dedicated platform at the Cyberport AI Supercomputing Center later this year, with technical testing expected to commence in early 2026 [2] - The HKMA will continue to leverage the GenA.I. sandbox to share best practices with the industry, promoting the responsible application of AI technology in the financial sector [2]

Group 1: Government Initiatives - The Hong Kong SAR government is actively promoting the development and application of fintech and artificial intelligence through various measures [1] - The Hong Kong Monetary Authority (HKMA) has established the Cargox expert group to optimize the digital ecosystem for trade financing, focusing on utilizing logistics data [6][8] - The HKMA and Cyberport launched the second phase of the GenA.I. sandbox to support the development and testing of AI solutions in the banking sector [10][11] Group 2: Virtual Assets and Compliance - HashKey Capital has received approval from the Hong Kong Securities and Futures Commission (SFC) to open a physical subscription channel for its actively managed fund, allowing investors to use top 100 tokens for investment [3] - HashKey Exchange has achieved the largest global coverage for virtual asset insurance, enhancing its position as a leading virtual asset exchange in Asia [4] - The SFC continues to support compliance innovation in the virtual asset industry, reflecting its commitment to fostering a regulated environment [2][3] Group 3: Fast Track Program - The Hong Kong Investment Promotion Agency announced the launch of the eighth Global Fast Track Program 2025, expanding opportunities for fintech and other verticals [12][14] - The program will provide participants with one-on-one meetings, industry expert guidance, and opportunities to connect with over 120 investors and industry leaders [14][16] - The collaboration with Hong Kong Science Park and Accenture aims to assist startups in expanding their business in Hong Kong, offering various support measures [15][16]