HONG KONG (Reuters) - A special regulatory regime that would allow Hong Kong banks to test out innovative new financial technologies will start as of Tuesday, Hong Kong's banking regulator said.

The Hong Kong Monetary Authority (HKMA) said earlier on Tuesday it would establish a so-called "sandbox" for financial technology innovation in the banking sector, amid fears the city is losing ground to China, Australia and Singapore in the fintech race, but did not specify a start date.

Raymond Chan, executive director of banking supervision at the HKMA, told reporters the new regime was valid as of Sept. 6, adding that it would only apply to banks looking to use fintech, not to standalone fintech firms.

(Reporting by Elzio Baretto; Writing by Michelle Price; Editing by Jacqueline Wong)