HSBC has enjoyed a healthy business in Hong Kong as the bank has built a 35 percent share of the retail loan market; the Chairman of HSBC is seen as the second most powerful figure in the territory behind the Governor of Hong Kong; that dominance could be changing with the onset of 8 new virtual banks that will begin operating in Hong Kong over the next 6 to 9 months; these new banks could force HSBC to cut fees and spend more on technology, leading to lower profits for the business; Goldman Sachs estimates that 17 percent of HSBC’s revenue could be at risk due to these new digital entrants; with 7.4 million people in Hong Kong the competition will be fierce, though talk of creating a Greater Bay Area which would include Macau and some mainland China cities could change the equation. Source.