HONG KONG – The Hong Kong Special Administrative Region government’s investment corporation is set to conduct overseas visits next year, aiming to connect its portfolio companies with international investors and help them tap into new application fields.
The first stop is likely to be Southeast Asia or the Middle East — regions that have been increasingly in the limelight for Hong Kong in recent years — the Hong Kong Investment Corporation (HKIC) revealed at the Hong Kong Start-up Investment and Development Summit on Friday. The corporation manages HK$62 billion ($7.95 billion) of funds.
This initiative comes hard on the heels of a successful collaboration in August, when the corporation helped the joint venture Spark export Hong Kong’s green transportation technologies to Thailand.
Known for its “patient capital” approach — typically having a high tolerance for risk and a long-term outlook on returns — to companies with cutting-edge technologies, the HKIC plans to invest in GeneSense Technology, Emaldo Limited, and Ninenovo Technology, which specialize in gene sequencing, sustainable energy solutions, and medical wearables, respectively. Since June, the corporation has established partnerships with four enterprises in smart manufacturing, life sciences, robotics, and green technology.
READ MORE: HK remains top investment option for over 70% of retail fund investors, says survey
“We aim to enable our ecosystem partners to connect directly with investors and application scenarios across regions, including those involved in the Belt and Road Initiative, creating more opportunities for collaboration and growth,” said Clara Chan Ka-chai, CEO of the HKIC.
In addition to its global network, the corporation’s capital base is also poised for a boost, as Chan announced it will manage part of the funds under the New Capital Investment Entrant Scheme.
Launched in March, the scheme provides another way for high-net-worth individuals to apply for permanent residency in Hong Kong. Each applicant must hold net assets of at least HK$30 million and invest a minimum of HK$30 million in eligible assets, with HK$3 million directed into an investment portfolio managed by the HKIC to support innovation and technology as well as other key industries.
HKIC’s capital pool is expected to swell by at least HK$1 billion if all 339 applications received as of late June get the green light.
The money comes at a time when the market is buzzing with expectations that the Federal Reserve may soon cut interest rates, which could unleash more liquidity into the market and create a more favorable ground for investment, Chan noted.
Given this backdrop, Financial Secretary Paul Chan Mo-po said he expects investors will seek opportunities for higher returns, particularly in innovation and technology — an area that has been in the spotlight over the years.
Hong Kong could benefit from this, as “it has a well-rounded fundraising ecosystem that includes not only the stock market but also a vibrant venture capital scene”, and has doubled down on technology development, Paul Chan added.
ALSO READ: HK’s capital investment scheme attracts 339 applications in four months
Since late 2022, more than 100 tech companies have set up or expanded their operations in Hong Kong with the assistance of the Office for Attracting Strategic Enterprises, investing more than HK$50 billion in the city and creating over 15,000 jobs.
According to Paul Chan, the companies come to Hong Kong for its strengths in capital, technology, and talent, as well as its position as an international hub that connects the Chinese mainland, Asia, and global markets.
Contact the writer at irisli@chinadailyhk.com
