Hong Kong investment arm funds 80 start-ups as war chest swells
Flush with proceeds from the city’s successful investment-migration scheme, HKIC puts money in local, mainland and overseas start-ups
The Hong Kong government’s two-year-old investment arm is mounting an aggressive and wide-ranging deal-making push to bolster innovation, putting money into as many as 80 start-ups and projects locally, in mainland China and overseas.
About 36 per cent of the projects getting funding from Hong Kong Investment Corp (HKIC) are in the city, while 42 per cent are on the mainland and 22 per cent are abroad, CEO Clara Chan Ka-chai said in her first presentation to the local legislature on Monday. The HKIC manages HK$62 billion (US$8 billion) in funds.
The large exposure to start-ups and projects outside Hong Kong comes with a requirement that investees relocate their research or key aspects of their operations to the city, Chan said.
“Investment by HKIC will also require these companies to list in Hong Kong when they go public in future,” she said in a Legislative Council panel meeting. “We also require them to have cooperation with Hong Kong universities or other local start-ups to make sure our investment can help promote innovation and technology in the city.”
Looking ahead, HKIC aims to invest in more companies in the Middle East, Southeast Asia and Europe, Chan added.
Financial Secretary Paul Chan Mo-po, who led a 110-member delegation to the 8th Future Investment Initiative (FII) summit in Riyadh, Saudi Arabia, in late October, said the host country wants to work with Hong Kong on more cross-border investment and start-up engagement.
