Positive Comment: Hong Kong Investment Corporation Activates Hong Kong’s Innovation and Technology Ecosystem, Injecting “New Momentum” into Economic Transformation
In August 2025, the report card of the first anniversary of the official operation of the Hong Kong Investment Management Limited (HKIML) was remarkable. With a scale of HK$62 billion, 120 projects were quickly launched, 2 companies were listed in Hong Kong, and more than 10 submitted or planned to submit listing applications. Every HK$1 of investment drove more than HK$5 of market funds to follow. Behind this series of figures lies a crucial breakthrough in Hong Kong’s transformation from “traditional real – estate – dominated” to “emerging technology – driven”, and it is also a successful practice of the government capital leveraging market vitality and building a global innovation and technology ecosystem.
First of all, HKIML’s “fast – paced” investment effectively fills the capital gap in Hong Kong’s innovation and technology field. In the past two decades, due to the single industrial structure and weak innovation and technology ecosystem in Hong Kong, it has long been ridiculed as a hotbed for “Low Tech”. High – tech projects had difficulty growing due to the lack of early – stage capital support. The emergence of HKIML has completely changed this situation. It focuses on three core tracks: hard technology, life science, and new energy/green technology. Using government funds as the “first move”, it quickly covers star projects such as SmartMore, BioMap, and Galaxy Universal. It not only provides crucial early – stage funds for start – ups but also sends a clear signal to the market that “Hong Kong attaches importance to innovation and technology”. For example, SmartMore, the first investment project of HKIML, accelerated the implementation of its technology with the financial support and is now in the preparation stage for listing. Galaxy Universal, the first embodied intelligence enterprise introduced to Hong Kong, has raised more than RMB 2.4 billion in total with the resource endorsement of HKIML, attracting a luxurious investment lineup. This model of “government capital + market follow – up investment” not only solves the “financing difficulty” problem of technology companies but also activates the market’s confidence in Hong Kong’s innovation and technology projects through the demonstration effect.
Secondly, HKIML’s “ecosystem – based” layout promotes Hong Kong’s leap from a “capital depression” to a “global innovation and technology hub”. Different from the single investment model of traditional government funds, HKIML takes “investment +” as its core strategy, integrating resource integration and ecological synergy into its genes. From organizing more than 10 technology companies to visit Malaysia and Brunei, facilitating efficient linkages among enterprises with “signing cooperation agreements in three days”, to co – hosting the “AI International Talent Summit” with the Beijing Academy of Artificial Intelligence and establishing the “Hong Kong Qingyuan Club” to cultivate young innovation forces, and then to jointly establishing co – investment plans with institutions such as Gobi Partners and BlueRun Ventures, HKIML is building a multi – dimensional ecological network of “government – enterprise – institution – talent”. The value of this ecological effect far exceeds the financial return. On the one hand, through its role as a “super connector”, Hong Kong provides the “first stop” for mainland technology companies to go global, attracting Internet giants such as ByteDance and Xiaohongshu, as well as AI and life science enterprises to settle. On the other hand, the advantages of Hong Kong’s research talent reserve in universities and the convergence of global capital are fully activated, forming a positive cycle of “talent – technology – capital”. As Chen Jiaqi, the CEO of HKIML, said, “Investment is not only for returns but also to create new growth momentum.” This strategic vision allows Hong Kong to find a differentiated position in global technological competition.
Finally, HKIML’s practice provides a replicable “Hong Kong sample” for “government capital guiding industrial upgrading”. Since its establishment in 2022, the Hong Kong Special Administrative Region Government has taken the principle of “no innovation and technology, no future” and has invested more than HK$150 billion in total to promote the development of innovation and technology. HKIML is the “execution engine” of this strategy. Its investment rhythm of 120 projects in one year not only reflects the government’s eagerness to promote transformation but also verifies the effectiveness of “concentrating resources to achieve major goals”. By combining direct investment and co – investment, HKIML ensures in – depth coverage of core tracks and reduces investment risks with the professional capabilities of market – oriented institutions. Through “global network building”, Hong Kong not only attracts international patient capital (such as the participation of global institutions with a scale of US$20 trillion in the “International Patient Capital Forum”) but also enables local enterprises to have the opportunity to connect with overseas markets. This model of “government – led + market synergy” provides an important reference for other regions to promote industrial upgrading through capital means.
Negative Comment: Hidden Worries under High – Speed Expansion, Hong Kong’s Innovation and Technology Ecosystem Needs to Beware of “False Flames” and “Weaknesses”
Although HKIML’s report card is eye – catching, the potential risks behind its high – speed expansion and the structural weaknesses of Hong Kong’s innovation and technology ecosystem still need to be vigilant. In the upsurge of “racing against time, competing for projects, and building ecosystems”, some problems may affect long – term sustainability.
Firstly, high – speed investment may hide risks of “project quality” and “return pressure”. The investment logic in the primary market emphasizes “careful selection”, and HKIML’s rhythm of 120 projects in one year (an average of one investment every three days) is “aggressive” in the current market environment. Although HKIML claims that “the project development speed exceeds expectations”, the growth cycle of technology projects is generally long, especially in fields such as hard technology and life science. Technology transformation, commercialization, and market verification all take time. For example, although directions such as embodied intelligence and AI – based drug discovery have broad prospects, the technical routes are not fully mature, and some projects may still be in the laboratory stage, with uncertainties in their subsequent financing and profitability. If HKIML lowers the screening standards to meet the “quantity target”, it may lead to some projects “breaking the issue price upon listing” or having difficulty in sustainable operation, ultimately affecting the efficiency of government funds and market confidence. In addition, as the “Hong Kong version of Temasek”, HKIML needs to balance “policy goals” and “financial returns”. If it over – pursues industrial guidance and ignores the return on investment, it may trigger doubts about “waste of government funds”.
Secondly, there are doubts about whether the “short – term enthusiasm” of ecological synergy can be transformed into “long – term resilience”. HKIML has quickly activated the ecosystem through activities such as overseas visits, summits, and cooperation plans. However, the cooperation among enterprises mostly relies on government “match – making”, and its depth and sustainability still need to be observed. For example, although the case of “signing cooperation agreements in three days” during the visit to Southeast Asia is efficient, whether the cooperation can be transformed into actual business growth and technical synergy still needs market testing. Although youth cultivation programs such as the “Hong Kong Qingyuan Club” can stimulate innovation enthusiasm, the local entrepreneurial culture and talent retention rate in Hong Kong (such as whether university research talents are willing to start businesses locally) are still weaknesses. In addition, although Hong Kong’s innovation and technology ecosystem has significant “internationalization” advantages, its local industrial chain supporting facilities (such as semiconductor manufacturing and high – end equipment) are relatively weak. If the introduced technology companies rely too much on external supply chains, they may face the problem of “easy to land but difficult to take root”.
Thirdly, the “government – led” model may suppress market – oriented vitality. As a wholly – owned institution of the Hong Kong Special Administrative Region Government, HKIML’s decision – making mechanism and investment direction are inevitably affected by policy orientation. Although the current layout is highly in line with market trends (such as AI and life science), the overly concentrated government capital may squeeze the living space of private venture capital institutions. For example, the HK$10 billion innovation and technology industry guidance fund recently launched in Hong Kong aims to attract VC/PE institutions to participate. However, the “dominance” of government funds may lead market institutions to prefer “follow – up investment” rather than independent judgment, which may weaken the professional capabilities of local venture capital in the long run. In addition, some enterprises may adjust their strategic directions to “obtain government resources” instead of making independent decisions based on market demand, leading to the risk of “policy arbitrage”.
Suggestions for Entrepreneurs: Seize the Opportunities in Hong Kong, Focus on “Hard Strength” and “Ecological Synergy”
Facing the rapid rise of Hong Kong’s innovation and technology ecosystem, entrepreneurs need to seize the opportunities and avoid risks at the same time. It is recommended to make efforts in the following three aspects:
Precisely connect with HKIML’s key tracks and strengthen the commercialization ability of technology. HKIML clearly focuses on hard technology, life science, new energy/green technology, as well as emerging directions such as fintech and aerospace. If entrepreneurs are deeply involved in these fields, they can focus on HKIML’s “direct investment” and “co – investment” plans, especially the “Co – Investment Partner Program” in cooperation with institutions such as BlueRun Ventures. This kind of cooperation not only provides financial support but also enhances the credibility of projects with the professional judgment of market – oriented institutions. At the same time, it is necessary to strengthen the commercialization ability of technology. HKIML emphasizes that “the project development speed exceeds expectations”, indicating that it prefers projects with “technological breakthroughs and market demand”. Entrepreneurs need to plan the product roadmap in advance, verify the business model, and avoid being eliminated due to “technological leadership but lagging commercialization”.
Make good use of Hong Kong’s role as a “super connector” and layout a global strategy. Hong Kong’s internationalization advantages (such as free capital flow, legal system in line with international standards, and overseas network resources) are the core support for entrepreneurs. It is recommended to use Hong Kong as an “outbound hub” and take advantage of the overseas visits organized by HKIML (such as market inspections in Southeast Asia, Europe, and the United States) to connect with overseas customers and partners. At the same time, use the scientific research resources of Hong Kong’s universities (such as the AI and biomedical laboratories of the University of Hong Kong and the Hong Kong University of Science and Technology) to deepen technical cooperation and improve the “technological content” of projects. In addition, pay attention to platforms such as the “Hong Kong Qingyuan Club” to establish connections with young research talents and investors and accumulate contacts for long – term development.
Balance “policy resources” and “market logic” and maintain strategic independence. Although government funds and resources are crucial for early – stage projects, entrepreneurs need to avoid over – relying on policy support. They need to maintain sensitivity to market demand and ensure that the project direction not only conforms to HKIML’s industrial guidance direction but also can achieve profitability through market verification. For example, in the field of life science, pay attention to the actual clinical needs of AI – based drug discovery and cooperation cases with pharmaceutical companies. In the field of embodied intelligence, clarify the application scenarios of products (such as industrial and service robots) and customers’ willingness to pay. In addition, if planning to list in Hong Kong, entrepreneurs need to understand the valuation logic of the Hong Kong stock market in advance (such as placing more emphasis on technological barriers and long – term growth rather than short – term profits) to avoid listing obstacles due to information asymmetry.
In conclusion, HKIML’s one – year report card has injected strong impetus into Hong Kong’s innovation and technology ecosystem, but the potential risks behind its high – speed expansion also need to be vigilant. For entrepreneurs, seizing the opportunities in Hong Kong’s “New Money Era” and focusing on technological hard strength and ecological synergy can help them gain a firm foothold in this industrial transformation.
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