In 2023, Hong Kong’s financial headlines centred around cryptocurrency, painting a predominantly negative picture. Seven per cent of coverage related to Hong Kong in global tier-1 media across 2023 was negative, according to a financial hub analysis by CARMA.
In comparison, two per cent of Singapore’s coverage was negative, while Dubai had a statistically negligible percentage of negative coverage. We question if this reinforced Hong Kong’s image as an unfavourable destination for talent and global crypto firms.
Crypto news dominated Hong Kong’s media coverage in 2023. In the first half of the year, there was a surge in positive coverage regarding Hong Kong’s efforts to boost crypto trading.
This included significant events such as the licensing of crypto exchanges like Huobi and OKX, the green light for the first retail cryptocurrency exchange, and the legal recognition of cryptocurrency as property.
However, attention shifted dramatically in the latter half of the year as the media extensively covered the JPEX scandal.
Amidst a year marked by turbulence in Hong Kong, we explore the significance of a financial hub maintaining a robust reputation as portrayed by the media.
What was the crypto media landscape like for Hong Kong in 2023?
Domestically, the Hong Kong media extensively covered the scandal, considering it the largest cryptocurrency fraud case in the region, involving HK$1.5 billion (US$191 million).
Local media outlets attributed responsibility to celebrities, key opinion leaders, and brands for failing to conduct proper due diligence before associating with JPEX.
Apart from the JPEX scandal, other crypto news included the Hong Kong BC Technology Group exploring the sale of its crypto platform, OSL. Today, we know that, ultimately, it did not take place. However, those rumours alone captured a large volume of attention and media mentions.
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Financial coverage related to Hong Kong thus portrayed a grim outlook for the region.
Reputation plays a significant role in attracting top talent and skilled professionals who prioritise security and stability.
Throughout 2023, Hong Kong experienced a brain drain as skilled workers migrated to Singapore or other hubs, highlighting the impact of reputation on talent retention.
What were the spillover effects of the JPEX crisis?
Despite these challenges within the cryptocurrency realm, the industry still thrives.
Globally, the media’s response to the crypto scandal in Hong Kong was not one of shock, given the prevalence of similar scams in the crypto and fintech sectors worldwide.
Consequently, while Hong Kong’s status as a cryptocurrency hub took a hit, its international reputation remained largely intact. It is unsurprising that Hong Kong, being a global financial hub, became a target for such scams.
Notably, Consensus, the premier cryptocurrency event, announced that its 2025 edition would be hosted in Hong Kong, underscoring the city’s enduring prominence in the crypto sphere and suggesting that its reputation as a crypto hub has not suffered irreparable harm.
In neighbouring hubs like Singapore, firms like Coinbase and Ripple secured licenses in the same quarter.
Similarly, over in Dubai, the media reported on crypto.com receiving a licence to operate in the country.
Strengthening reputation through media intelligence
The reputation of a city (or an organisation) is at stake when confronted with a public-facing or high-visibility crisis. While the causes of such crises may vary, what truly matters is how we choose to react and respond.
In today’s corporate landscape, reputation management has gained significant importance, prompting CEOs to prioritise it alongside other critical business units.
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The ability to reclaim your narrative is key when a crisis happens. Every statement issued or message released is a step towards taking back control. With news breaking at the speed of light, it’s crucial to rely on intelligence and analysis to effectively address and manage the incident.
Media intelligence, which examines and evaluates media coverage, offers a roadmap of reputation pillars and areas of visible recognition and helps assess the extent to which a crisis might tarnish reputation. In-depth analysis of the collected data then guides the development of strategic recovery approaches.
In-depth analysis of the collected data then guides the development of strategic recovery approaches.
The Hong Kong government, for instance, made concerted efforts to mend its public image by implementing initiatives to boost the public’s understanding of crypto.
Cultivating trust and a positive reputation fosters consumer loyalty. Trust encourages consumers to exhibit greater levels of forgiveness, particularly during challenging times.
The findings were based on CARMA’s report.
The content of the report was collected using a selected set of keywords and search queries, focusing on global tier-1 online media. CARMA analysed 41,000 articles in total from 1 January to 31 December 2023, that featured major mentions of each city: Singapore, Hong Kong and Dubai.
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