Portrait of Chinese Web3.0 Entrepreneurs: Half in Shenzhen, Half in Hong Kong, Sowing Seeds Where Hope Exists
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Portrait of Chinese Web3.0 Entrepreneurs: Half in Shenzhen, Half in Hong Kong, Sowing Seeds Where Hope Exists
The ebb tide is precisely the best time to start a business, and an ideal moment to master the fundamentals.
Navigating Web3 tides with focused insightsAuthor丨Carl
Editor丨Marco
Chinese entrepreneurs in the Web3.0 space have long described themselves as "wanderers," constantly relocating overseas—from Singapore and Dubai to the U.S., Southeast Asia, and Central Asia—amid recurring regulatory pressures.
Hong Kong's policy declaration on virtual asset development has given many entrepreneurs hope of returning, making Hong Kong the top choice for Chinese Web3.0 founders.
"Almost all mainland Web3.0 entrepreneurs are watching Hong Kong closely. There’s now a trend of founders gathering in Shenzhen from across the country," a Web3.0 entrepreneur told Techub News.
Another founder said at least a dozen Web3.0 projects in his social circle are already establishing operations in Hong Kong.
However, Hong Kong's Web3.0 policies and their implementation still face challenges—some say opening bank accounts is difficult, while others find operational costs too high.
Going to Hong Kong remains uncertain—but innovation and entrepreneurship have always been this way: planting seeds where there is hope.
01 HK$1 Million Support: Funding Close to a Pre-Seed Round
Jeff, co-founder of READ2N, expressed great satisfaction with the services offered by Cyberport’s Web3.0 Hub in Hong Kong.
Recently, Jeff secured an office at the Cyberport Web3.0 Hub, along with access to shared facilities such as gyms, lounges, and pantries—"essentially ready-to-move-in."
According to Jeff, READ2N leverages blockchain and AI technologies to promote global dissemination of literary works. The company has released over 90 books across nearly 10 countries, translated into 10 languages using AI. It currently has 50,000 registered users and 4,000 daily active users.
Founded in Singapore at the end of 2022, READ2N decided to shift its focus to Hong Kong amid the city's growing Web3.0 momentum this year.
In January 2023, Hong Kong officially launched the "Cyberport Web3.0 Hub." Financial Secretary Paul Chan announced in the 2023–2024 budget speech that HK$50 million would be allocated to accelerate the development of the Web3.0 ecosystem.
On June 18, Chan stated that since the launch of the Cyberport Web3.0 Hub, more than 150 Web3.0 companies had settled in Cyberport. Notable tenants include cryptocurrency exchange Hashkey Group, Web3.0 gaming developer Animoca Brands, and Consensys—the Ethereum software firm behind MetaMask wallet.
Earlier this year, READ2N applied for Cyberport’s incubation program. Jeff noted: "There's no formal entry barrier, but we went through multiple rounds of screening and pitching interviews. Most applicants are early-stage Chinese startups, and the acceptance rate is around 5%."
After passing the interview, READ2N successfully joined Cyberport, receiving not only office space but also HK$1 million in funding disbursed over time.
"Cyberport also assigns a mentor to each admitted startup to help drive project execution," Jeff added.
The favorable policies of Cyberport’s Web3.0 Hub have attracted widespread attention among Web3.0 entrepreneurs. Multiple sources told Techub News that many in their networks are actively considering launching ventures in Hong Kong.
Leo Luo, CEO of AIGO, said at least ten Web3.0 projects in his network are already operating in Hong Kong, spanning finance, e-commerce, DeFi, and GameFi. He expects the number of projects setting up in Hong Kong to keep rising.
Luo previously worked at a leading Chinese internet giant. His company AIGO focuses on commercial applications of AIGC and NFTs, helping individuals and enterprises boost efficiency while safeguarding data privacy and ownership. Currently headquartered in Hangzhou, AIGO also has offices in Shenzhen and other cities.
Luo told Techub News he is preparing to relocate the company's headquarters to Hong Kong by the end of this year.
In April, the "2023 Hong Kong Web3.0 Carnival" was held in Hong Kong, drawing over 10,000 attendees. Financial Secretary Paul Chan delivered opening remarks, stating that Web3.0 represents an irreversible future trend and expressing strong hopes for its development in Hong Kong.
Luo attended the event and said: "The conference covered every major segment—AIGC, industrial blockchain, SocialFi, DeFi, GameFi—with full ecosystem representation. This shows Hong Kong’s openness and determination to foster Web3.0 growth, revealing real opportunities and room for expansion."
With assistance from local Hong Kong associations, Luo has already set up an office in Kwun Tong, Kowloon, and submitted applications to join Cyberport and Science Park.
"The service is thoughtful and human-centered," Luo said. "You just need a product prototype. Required documents aren't complex—standard business materials like a pitch deck. All forms of support are clearly listed. You can really feel they’re enthusiastically supporting you."
According to Luo’s estimate, if accepted into the incubation program, he could relocate the entire headquarters to Hong Kong within six months at near-zero cost. "The level of support is comparable to pre-seed funding."
02 Gathering in Shenzhen, Advancing into Hong Kong
"Virtually all mainland Web3.0 entrepreneurs are watching Hong Kong. Right now, there’s a clear trend: founders from all over China are converging in Shenzhen," said Ram (a pseudonym).
Ram is a veteran in the crypto space, entering the industry around 2015 and involved in investment and NFT startups. He said he has been in Shenzhen for several months, scouting opportunities in Hong Kong’s Web3.0 scene and planning to launch a blockchain-based foreign trade venture.
At a recent small-scale Web3.0 meetup, Ram met entrepreneurs from Beijing and Hangzhou—all in Shenzhen with the same goal: preparing to enter Hong Kong.
"As Hong Kong embraces Web3.0, small gatherings in Shenzhen—which had been quiet for a year—are suddenly multiplying," Ram noted.
Multiple interviewees said Hong Kong offers convenient access to the mainland, lower living and operating costs compared to Singapore, and less cultural exclusion than Dubai or Western countries.
Taking all factors into account, Hong Kong remains the top choice for Chinese entrepreneurs.
Bao Yu, vice president of the Hong Kong Web3.0 Association and member of the UN ESCAP Digital Economy Working Group, told Techub News: "Hong Kong provides a strong platform, while Shenzhen offers abundant talent and technological strength. Combining both creates powerful synergy. The ideal model is to handle business development, fundraising, and compliance in Hong Kong, while keeping core R&D teams in Shenzhen."
Currently, Bao is facilitating the establishment of several projects in Hong Kong, including DePIN, AI, and Web3.0+healthcare initiatives.
READ2N co-founder Jeff advised: "Entrepreneurs should have realistic expectations when starting up in Hong Kong. We’re proactively engaging with Hong Kong’s policies and exploring possibilities, but there’s no need to move everything there immediately. With preferential policies available, founders should embrace them to reduce costs and gain advantages."
It is understood that most entrepreneurs moving to Hong Kong currently station only a small team—mainly compliance and marketing staff—there, while keeping the majority of employees on the mainland. Some projects only require their leaders to occasionally visit Hong Kong offices to maintain a presence.
Yang Wei, founding partner at Divide Capital (Equal Share Capital), advised Web3.0 entrepreneurs heading to Hong Kong: "Don’t rush blindly. Think clearly about what you truly need."
With over a decade of entrepreneurial experience across Internet 1.0 and 2.0 eras—including roles at Tencent—and years in investment and capital markets, Yang began investing in Web3.0 in 2017, primarily backing friends’ projects.
Hong Kong is a frequent destination for Yang, though visits were paused during the pandemic. After restrictions lifted last year and Hong Kong issued its virtual asset declaration, Yang immediately visited to explore Web3.0 opportunities.
In May, Yang decided to formalize his Web3.0 investment activities in Hong Kong by establishing a dedicated firm, transitioning from individual investments to institutionalized operations. He is currently scouting office space and hiring talent in Hong Kong. Some Web3.0 projects he has invested in have already established a presence in Hong Kong, while others are preparing to apply for Cyberport’s incubation program.
In Yang’s view, regardless of global shifts, international trade will endure. As a bridge between mainland China and the world, Hong Kong’s strategic importance is undeniable. With its strong push for Web3.0, it presents a rare opportunity for entrepreneurs.
However, operating in Hong Kong comes with high costs—especially rent and salaries. "Compared to Beijing, rents in central Hong Kong areas can be four to five times higher, and labor costs are significantly steeper," Yang acknowledged.
But Yang emphasizes Hong Kong’s intangible advantages: "When factoring in policy support, entrepreneurial dynamism, international exposure, and industry networking, Hong Kong’s overall cost isn’t actually that high."
03 The Compliance Challenge
Beyond high costs, Web3.0 companies in Hong Kong face significant compliance hurdles—starting with banking access.
Harly (a pseudonym), who has long worked in asset management, switched to crypto asset management during the 2021 bull market and developed a proprietary software system.
"Before, operating compliantly wasn’t feasible, but without public fundraising, legal risks were low," Harly said. "Now that Hong Kong allows compliance, I want to register a company there and run this business legally."
But after several trips to Hong Kong, Harly grew discouraged: "It’s much harder than expected. Getting a license requires millions, building your own compliance infrastructure, hiring at least two ROs (Responsible Officers), and limiting crypto allocations to 10% of assets in the first year. With rent, staffing, legal fees, total costs could reach HK$20 million."
"At that point, you might as well just HODL Bitcoin," Harly said wryly.
"HODL" refers to Bitcoin, currently priced at around RMB 220,000 per coin, up from a peak of RMB 460,000. Harly predicts Bitcoin’s next halving cycle in 2024 could trigger another surge.
Harly also faces an unresolved issue: banks refusing to open accounts. Several other Web3.0 entrepreneurs shared similar experiences with Techub News—even banks listed by the Hong Kong Monetary Authority (HKMA) as "blockchain-friendly" declined their applications.
One industry insider told Techub News that even through personal connections with bank executives, the request was denied: "They said they hadn’t received official guidance and couldn’t approve it—otherwise, they’d bear legal liability."
He added that due to Hong Kong’s close ties with mainland China and strengthened anti-money laundering cooperation, and given crypto’s role as a potential money laundering channel, resolving banking access for Web3.0 firms will require both wisdom and sustained industry advocacy.
In response to difficulties in opening accounts for virtual asset firms, the HKMA has convened meetings with banks and Web3.0 companies to clarify required documentation and guide applicants.
Cynthia Sin, alternate CEO at ZhongAn Bank who attended the meeting, told Techub News: "The HKMA strongly supports Web3.0 development but understands banks have concerns. These discussions are narrowing the gap, allowing clearer mutual understanding."
Sin explained that customer due diligence typically takes two to three weeks, though longer for companies with complex shareholder structures.
Still, some companies report smooth banking experiences.
Jeff from READ2N told Techub News that because his company is backed by Cyberport’s incubation program, he expects banking access to be straightforward.
He had already discussed account opening with banks beforehand.
"Since Hong Kong is committed to advancing Web3.0, these issues will gradually be resolved," he believes.
04 A Downturn Is the Best Time to Start Up
This past April, Hong Kong’s Web3.0 scene was exceptionally vibrant. Global Web3.0 participants flocked to the city, hosting over 100 events in a single month. One entrepreneur said, "Back-to-back events from morning till late night, even past midnight."
Three months later, the frenzy has subsided.
Bao Yu, vice president of the Hong Kong Web3.0 Association, said this cooling-off period was expected. "The Web3.0 world inevitably includes malicious actors and vulnerable users. Hong Kong aims to fix this. The real value lies in blockchain’s ability to reduce transaction costs, increase transparency via tokens, unlock natural financing capabilities, and transform business models—these are what entrepreneurs should focus on."
Hong Kong is at the global forefront of Web3.0 regulation. Bao noted that Hong Kong has established a clear licensing framework for virtual asset exchanges, with top-level promotion from the Chief Executive down to the Financial Secretary—an unprecedented commitment worldwide. Unlike Singapore, Hong Kong also permits local residents to participate in regulated virtual asset investments.
On June 1, Hong Kong’s new virtual asset exchange licensing regime officially took effect, allowing retail investors to trade digital assets on licensed platforms.
Legislator Junius Ho told Techub News that over 150 companies have expressed interest in applying for licenses, with some already submitting applications. The two firms previously granted transitional licenses are now updating their materials.
Bao believes Hong Kong has already resolved its core Web3.0 challenges. Other remaining issues are merely matters of time. The government’s pace of regulation is well-calibrated—nothing is fundamentally broken. The question is not whether it will succeed, but whether the outcome will be worth HK$100 trillion or HK$1,000 trillion.
Multiple entrepreneurs told Techub News that true industry players should pay less attention to cryptocurrency price swings and instead focus on real, long-term value. The downturn is precisely the best time to start up—when fundamentals matter most.
Gao Zhimin, founder of Benawi Technologies, focuses on blockchain-enabled fractional ownership. He highlighted blockchain’s decentralization, transparency, and immutability, saying it can tokenize illiquid assets like real estate, greatly enhancing liquidity.
A Ph.D. graduate from the University of Houston, Gao has long researched blockchain and successfully implemented a national-level blockchain solution for maritime logistics in the U.S. He has now applied to Science Park and Cyberport’s incubation programs with a project focused on fractionalizing property and shipping rights.
Ma Youxin, CEO of Spirit Motion, is preparing for his trip to Hong Kong. He has signed up for the BIG DEMO DAY Web3.0 showcase on July 25, hoping to connect with like-minded partners and angel investors.
Hosted jointly by Central Research and Hong Kong Cyberport, with Techub News as co-organizer, BIG DEMO DAY will feature numerous global investment firms and family offices presenting high-potential projects.
Ma’s project combines AIGC and NFTs. He aims to break away from the domestic digital collectibles model, focusing instead on AIGC-generated PFPs (profile pictures) to build fan economies, integrate cultural merchandise, and expand into consumer markets.
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