Hong Kong’s investment body posts US$300 million income in first year
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Hong Kong’s investment body posts US$300 million income in first year
09 mins
The Hong Kong Investment Corporation (HKIC) earned HK$2.34 billion (US$300.7 million) in investment income last year, as the city’s wholly owned investment vehicle made an impressive report after its first year of operation.
HKIC posted HK$2.25 billion in operating income for the year that ended on December 31, on HK$64 billion in total assets, while deploying less than one-fifth of its initial capital of HK$62 billion, according to a report on Thursday.
“HKIC is the patient capital investment arm of the government with a dual mandate to enhance the economic vitality and long-term competitiveness of Hong Kong, while seeking financial return,” said Financial Secretary Paul Chan Mo-po, who is also the chairman of the HKIC.
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It is a key driving force in contributing to the nurturing of new quality productive forces and cementing Hong Kong’s role as an international financial centre, an international innovation and technology hub, and an international hub for high-calibre talent, he said in the annual report.
Financial Secretary Paul Chan Mo-po at the International Forum for Patient Capital in Hong Kong on May 22, 2025. Photo: Jonathan Wong alt=Financial Secretary Paul Chan Mo-po at the International Forum for Patient Capital in Hong Kong on May 22, 2025. Photo: Jonathan Wong>
These missions have already yielded initial success. As of the end of October, the HKIC invested in more than 150 projects across key sectors in hard and core technology, biotech and new energy and green technology, as well as relevant applications. More than 10 companies have either filed or planned to file their listing applications in Hong Kong this year, HKIC said.
By geography, 62 per cent of the deployed capital went to companies on the Chinese mainland, 34 per cent in Hong Kong and the remaining 4 per cent elsewhere. Among the investment themes, 71 per cent were in hard and core tech, 13 per cent in biotech and 11 per cent in new energy and green technology, according to the annual report.
Chan said the impact of the HKIC ecosystem had been taking shape in alignment with Hong Kong’s role as the “superconnector” and “Super Value-Adder” between the Chinese mainland and the world. Every HK$1 invested by the HKIC has attracted over HK$6 from long-term market capital, he said.
The HKIC, first announced by Chief Executive John Lee Ka-chiu in his 2022 policy address, aims to use the government’s reserves to boost Hong Kong’s economy and industries.
“HKIC is a professional institutional investor committed to long-term value and responsible investing,” said the HKIC’s CEO Clara Chan Ka-chai.
“With a global perspective, we strive to enhance our influence in international markets, contribute to our nation’s development, tell compelling Hong Kong stories, and help establish a market environment that benefits all stakeholders,” she said. “Through the creation of the HKIC ecosystem, we are mobilising public and private sector resources to drive the transformation and reshaping of Hong Kong’s economic and financial competitiveness.”
The HKIC would continue to expand its strategic positioning and deepen collaboration with its investment partners, Chan added.
“Our investment strategy is progressive, aiming to cast the net wide enough before going deep into individual projects, with a view to striking a reasonable balance across multiple dimensions,” she said.
Hong Kong Investment Corporation (HKIC) CEO Clara Chan Ka-chai, at the International Forum for Patient Capital (IPC), at Regent Hong Kong on May 22, 2025. Photo: Jonathan Wong alt=Hong Kong Investment Corporation (HKIC) CEO Clara Chan Ka-chai, at the International Forum for Patient Capital (IPC), at Regent Hong Kong on May 22, 2025. Photo: Jonathan Wong>
HKIC’s impact extends beyond financial returns, according to the report. Its investments have made substantial contributions to Hong Kong’s local economy, including supporting the rental of over 268,000 sq ft of commercial space, enabling the creation of about 6,400 jobs and fostering the development of 100 intellectual property assets, as well as contributing to 165 events and 101 collaborations with local universities.
HKIC has begun to amplify its voice and influence globally. It successfully convened its inaugural International Forum for Patient Capital in May, bringing together representatives from over 80 institutions across regions that collectively represent around half of global GDP and US$20 trillion in assets under management.
“We are impressed with HKIC’s momentum in amplifying impact through an interconnected investment ecosystem that unites public and private resources to create long-term value add for Hong Kong,” said Oliver Weisberg, CEO of Blue Pool Capital, a Hong Kong-based investment manager and the family office of Alibaba Group Holding’s chairman, Joe Tsai. Alibaba owns the Post.
The HKIC on Tuesday appointed 10 asset managers spanning venture capital, private equity, private credit and hedge funds to oversee at least HK$3 billion under its enhanced cash-for-residency scheme.
The new batch of managers for the investment portfolio under the New Capital Investment Entrant Scheme included Hong Kong-headquartered Value Partners, one of Asia’s largest asset management firms, and Primavera Capital, whose founder and chairman Fred Hu Zuliu was a former partner and chairman of Goldman Sachs Greater China.
