Aligned with its long-term objective of generating returns and augmenting Hong Kong’s competitiveness in an evolving international ecosystem, the Hong Kong Investment Company (HKIC), Hong Kong’s sovereign wealth fund has identified opportunities in high-growth sectors including Fintech, Aerospace and Artificial Intelligence (AI).
Speaking during the Asia Private Equity Forum, Clara Chan Ka-Chai, the chief executive officer of HKIC, shared how HKIC has begun to look beyond traditional investment sectors with its HK$62 billion (US$8 billion) Hong Kong Government-owned fund and has also started to identify opportunities that align with Hong Kong’s role as a centre for global financial services, strategically connecting mainland China to the rest of the world through international capital markets.
“As a long-term investor, you can look beyond the cycles and be able to see opportunities such as attractive multiples, particularly in sectors that are technology enabled,” Chan stated, underscoring the need for both strong financial returns and maintaining Hong Kong’s competitive position. In order to realise these objectives, HKIC will require to make co-investments alongside other international institutions and establish partnerships with growth companies.
The HKIC has expanded its investment focus over the last year—and now it is supporting many more projects and companies than just the “hard” technologies of the past. The Fund is now also making investments in fintech, aerospace, and a variety of other industries in order to be positioned to take advantage of the technological innovations that will be occurring in various sectors. The Fund has made over $120 million of investments from its start in 2024. Many of these companies that the Fund has invested may be preparing for initial public offerings (IPOs) in Hong Kong.
The Fund signed a major agreement with SmartMore, one of Hong Kong’s AI unicorns, to help establish an AI research institute in Hong Kong and further develop Hong Kong’s technology ecosystem. In addition, this agreement represents HKIC’s investment strategy around supporting the growth of frontier technology industries in Hong Kong.
HKIC’s investment strategy is part of a larger plan to make Hong Kong a global leader for technology and innovation . Additionally, as the financial centre of Asia, Hong Kong has strong fintech infrastructure, regulatory support and global connectivity. The financial centre status of Hong Kong provides an environment for capital from a variety of sources to create new technology and to solidify the competitive advantages that Hong Kong has as a result of changing geopolitical conditions and increased competition in developing technologies globally.