High-End Dialogue: Qian Fenglei, Chairman of Hengfeng International: The Development of the Web3.0 Industry has Transitioned from a Grassroots Era to an Institutional Era

Article Author: 0x9999in1

Source: MetaEra

Recently, MetaEra's Hong Kong section has been launched, featuring the 'Second Anniversary Celebration of Hong Kong's Crypto New Policy' series of events, with an important segment being 'High-End Dialogue: Influential Figures in Hong Kong Web3.0.' The interviewee for this issue is Qian Fenglei, Chairman of Hengfeng International Holdings Limited.

Character Introduction

Qian Fenglei, a well-known entrepreneur, seasoned investor, and philanthropist. He is currently the Chairman of Zhejiang Hengfeng International Holdings Limited, with industries spanning mainland China, Macau, Hong Kong, and Southeast Asia. Qian Fenglei is renowned for his generous donations to charity and has received the "Top Ten Charitable Star" award, as well as being listed in several charitable rankings.

Key Insights

● The core values of Web3.0 are openness, privacy, and co-construction, which are realized through technologies such as blockchain and smart contracts, bringing new possibilities to financial services.

● I believe the policies and measures taken by the Hong Kong government to promote Web 3.0 development are very positive and forward-looking.

● The development of the Hong Kong dollar stablecoin has significant implications for Hong Kong's position in the Web3.0 field. It can serve as a bridge between traditional finance and the DeFi ecosystem, and has the potential to become an indispensable part of the global financial system.

● The Hong Kong dollar stablecoin and the digital Hong Kong dollar (CBDC) can develop complementarily. The digital Hong Kong dollar is suitable for circulation within Hong Kong, while the Hong Kong dollar stablecoin is more suitable for cross-border trade and service payment settlements.

● The development of the Web3.0 industry has also transitioned from a grassroots era to an institutional stage, moving from disorder into a gradually regulated system.

● The application of blockchain technology in charity and public welfare not only enhances transparency and efficiency but also increases public trust, which is crucial for the sustainable development of charitable activities.

● Our vision for external output is to become a great company like Alipay in the crypto world!

Full Transcript

MetaEra: Mr. Qian, your Hengfeng International has always been relatively low-key, and there are few related media reports online. Is this interview with our Web3.0 new media a significant shift in the company's external strategy?

Qian Fenglei: Hengfeng International has always focused on investment management in traditional finance and the virtual field. The company is currently undergoing an important transformation into a technology-driven fintech company, especially in the Web3-based payment sector. This industry is still in its early rapid development phase, facing many challenges and uncertainties in technological development, commercial application scenarios, compliance, and regulation. We need to integrate more resources, including financial and human capital. We are pleased to inform everyone through this interview that we have just completed a $100 million special financing round, intending to integrate more upstream and downstream resources in the industry to bring new strength to the payment industry.

MetaEra: As an asset manager who has been deeply involved in traditional finance for many years, how do you view Web3.0? What opportunities and challenges do you think it will bring to you or the traditional asset management industry, and how will you respond?

Qian Fenglei: Web3.0 is generally regarded as the next generation of the internet where all data and content are stored on-chain and owned by users. Its core demand is to create a more decentralized and user-friendly environment, effectively countering the monopolistic giants of the centralized internet. The core values of Web3.0 are openness, privacy, and co-construction, which are realized through technologies such as blockchain and smart contracts, bringing new possibilities to financial services.

I believe the opportunities presented by Web3.0 are multifaceted. In the investment field, Web3.0 offers new investment areas such as crypto assets, NFTs, and DeFi, which provide new growth points for the traditional asset management industry. In terms of efficiency improvement, Web3.0 can lower transaction costs and enhance efficiency through smart contracts and blockchain technology, enabling assets to be traded globally with low thresholds and high liquidity. In terms of data assetization, Web3.0 facilitates data assetization, achieving efficient circulation of data and supporting high-quality development of the digital economy.

Nevertheless, Web3.0 still faces many challenges. The three main challenges are regulatory uncertainty, technological risks, and market volatility. Regulatory uncertainty refers to the multiple financial regulatory policies involved in the actual operation of decentralized lending. Various countries' regulatory policies are still in the research and exploration stages, and there is no mature regulatory model, hence the industry faces risks of regulatory policy uncertainty. Technological risks include risks arising from smart contract vulnerabilities, blockchain network scalability, and other technical issues. Additionally, market volatility is also a concern for many, as decentralized lending based on the logic of rising token prices and infinite recycling pledges for leveraged arbitrage may amplify the overall market's price volatility during both price increases and decreases.

Our response strategy includes strengthening regulatory cooperation, working with regulatory agencies, and actively participating in the establishment of regulatory frameworks to ensure compliance in our business. You may have seen that we are currently actively cooperating with relevant regulatory agencies of the Hong Kong government, and all our businesses are being conducted in compliance; another aspect is technological innovation and risk management, continuously focusing on and investing in key technologies such as blockchain and smart contracts, and establishing corresponding risk management systems to address technological risks.

MetaEra: We see Hengfeng International, as a licensed asset management company in Hong Kong, has sent positive signals towards virtual assets. Can you share what virtual asset allocations you have already made? As a company that once managed asset scales exceeding one hundred billion, do you have an estimated ratio for cryptocurrency assets?

Qian Fenglei: Hengfeng International will enter this emerging market as a dedicated entity focused on the Web3 field. We have made positive allocations in mainstream virtual assets and expect to further increase our positions in the future, but this is just our basic asset allocation. Our future core direction remains in fintech, meaning we will heavily invest in the infrastructure development of Web3, especially in payment-related products and practices. Currently, we have already begun taking active steps through self-development and acquisitions, and we will soon announce our series of acquisition plans to achieve rapid resource and industry integration.

MetaEra: Given the Hong Kong government's positive attitude and policy support for the Web 3.0 industry since the announcement of crypto policies in October 2022, industry activities have been frequently held. As a traditional finance practitioner in Hong Kong, how do you evaluate the policies and measures taken by the Hong Kong government to promote Web 3.0 development? What areas do you think can be further strengthened?

Qian Fenglei: As a traditional finance practitioner based in Hong Kong, I believe the policies and measures taken by the Hong Kong government to promote Web 3.0 development are very positive and forward-looking. Below are my evaluations of the Hong Kong government's policies and areas that could be further strengthened.

First, let's look at policy support and market response. Since the Hong Kong government released its (policy declaration on the development of virtual assets in Hong Kong) in October 2022, it has demonstrated a positive attitude and policy support for the Web 3.0 industry. This series of policies not only indicates the Hong Kong government's stance and guidelines on Web 3.0 but also sets the direction for future policy development, such as policies on stablecoins and tokenized assets (RWA). The market has responded enthusiastically, reflecting the positive impact of these policies.

Next is the essential regulatory framework and industry development. The Hong Kong government has introduced a series of supportive and regulatory policies, including the establishment of the Web3.0 Association, Web3Hub Fund, and the implementation of a new licensing system for virtual asset service providers. These provide a new starting point for the development of the Web 3.0 ecosystem and help establish a more standardized and healthy market environment to promote the sustainable development of the industry.

To ensure the stable development of Web 3.0, talent policy and resource investment are also important aspects. The Hong Kong government proposed several talent-related policies in its policy report, such as establishing a 'Talent Service Office' and expanding the 'High-End Talent Pass Scheme.' These policies help attract and cultivate the technology talents needed for the Web 3.0 industry. Additionally, the government has allocated HK$62 billion to invest in sectors that contribute to the future economy, including fintech (including virtual assets and Web3), demonstrating the government's emphasis and investment in the Web 3.0 industry.

In summary, the Hong Kong government has already taken a series of positive policies and measures to promote Web 3.0 development, but there is still room for further improvement, especially in regulatory coordination, international cooperation, and public education.

MetaEra: The Hong Kong government is exploring the possibility of turning the digital Hong Kong dollar (e-HKD) into a stablecoin. We have seen that Hengfeng International has strategically invested in one of the first three institutions for the Hong Kong dollar stablecoin "sandbox" testing. Can you share more details? How do you view the development of the Hong Kong dollar stablecoin?

Qian Fenglei: We have signed confidentiality agreements with our investors, so we cannot disclose more details at this time.

The development of the Hong Kong dollar stablecoin has significant implications for Hong Kong's position in the Web3.0 field. It can serve as a bridge between traditional finance and the DeFi ecosystem, and has the potential to become an indispensable part of the global financial system.

Although the stablecoin market is currently dominated by dollar-backed tokens, with the consolidation of regulatory frameworks, stablecoins supported by more fiat currencies are expected to grow. The development of the Hong Kong dollar stablecoin faces challenges competing with dollar stablecoins but also has enormous market potential, especially in cross-border payments and trade financing.

The Hong Kong dollar stablecoin and the digital Hong Kong dollar (CBDC) can develop complementarily. The digital Hong Kong dollar is suitable for circulation within Hong Kong, while the Hong Kong dollar stablecoin is more suitable for cross-border trade and service payment settlements.

The development of the Hong Kong dollar stablecoin is a complex yet opportunity-filled area. The Hong Kong government has already taken a series of positive measures to promote the development of this field but still needs to explore and innovate more in technical implementation, market promotion, and regulatory coordination.

MetaEra: Facing the constantly innovating Web3.0, the speed of new project births is very fast. Is your company or individual considering increasing investment in the primary sector? Will you establish a venture capital institution focused on investing in the Web3.0 field?

Qian Fenglei: Hengfeng International has already entered this field through special fundraising, particularly in Web3 payments. Both the company and I personally will adopt an ALL-IN attitude to continue producing results in this field and promote industry development. We have already begun investing in companies related to the upstream and downstream of the industry, and establishing a specialized investment institution focused on the Web3 field is already within our planning scope.

MetaEra: Considering the rapid development and widespread application of Web 3.0 technology, what strategic plans does your enterprise have in the next five years to ensure competitiveness in this emerging field?

Qian Fenglei: First, we will strategically focus on the Web3 payment field. The industry's development from infrastructure, public chains, and protocols to the prosperity of DAPPs inevitably requires payment, which mirrors the development path of Web2. This is a vast track that requires significant resource investment; the industry's development has transitioned from grassroots to institutional stages, moving from disorder into a gradually regulated state. Hengfeng was born at such a critical time, backed by a rich background and resources in traditional finance, and we have just completed a $100 million financing round. This is just the beginning of our integration of the traditional industry and the crypto sector. Our vision for external output is to become a great company like Alipay in the crypto world!

MetaEra: You are personally passionate about charity and have been listed in Forbes' charitable rankings as one of the top hundred philanthropists. In the Web 3.0 era, do you think blockchain technology can better serve charitable and public welfare causes?

Qian Fenglei: Blockchain technology provides a decentralized database, and its transparency and immutability characteristics make the process of donations and resource allocation more transparent and trustworthy. The public can track the flow of funds to ensure donations are used correctly, reducing the risk of corruption and misuse of funds.

Blockchain technology can create decentralized donation platforms, allowing donations to flow directly to beneficiaries, reducing intermediary steps. Smart contracts can ensure that donations are automatically released according to agreed conditions, eliminating trust issues with traditional platforms.

Smart contracts can programmatically record and execute charitable donation agreements. Once certain conditions are met, such as reaching a certain amount raised, donations can be automatically released to the beneficiaries. This not only reduces the risk of human intervention but also increases the efficiency of the donation process.

The traceability capability of blockchain can ensure the traceability of donations. Donors can track how their donations are used, ensuring that donations are correctly allocated to projects, thus increasing public trust in charitable organizations and promoting the sustainable development of public welfare.

In summary, the application of blockchain technology in charity and public welfare not only enhances transparency and efficiency but also increases public trust, which is crucial for the sustainable development of charitable activities. With the further development of technology, we have reason to believe that blockchain will play a more important role in social welfare and charitable causes.