Hong Kong is actively considering the launch of a new offshore renminbi venture capital fund to channel liquidity into frontier technologies and emerging industries, Financial Secretary Paul Chan Mo-po said on Sunday.
The proposal, announced alongside plans to inject additional capital into the Hong Kong Investment Corporation – the Hong Kong Special Administrative Region government’s patient-capital investment flagship – is the latest effort to strengthen the interplay between the financial markets and innovation ecosystem – a strategy Chan described as a mutually reinforcing cycle.
Writing in his weekly blog, Chan said the HKIC has invested in more than 200 projects spanning hard technology, life and health sciences, and new energy and green technology. Ten of its portfolio companies have listed in the SAR, and more than 30 others are applying or preparing to go public this year.
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The Northern Metropolis will be key ground for HKIC-linked enterprises to expand their presence in the city, he said.
The rapid development of technology, especially artificial intelligence, has made related industries and listed companies prime targets for global capital. On the local stock market, shares of several companies involved in large AI models or hardware have recorded multi-fold gains this year.
According to the finance chief, fundraising activity has been robust. Initial public offerings so far this year have raised more than HK$165 billion ($21.15 million) while listed companies have tapped the market for more than HK$241 billion in follow-on financing.
The market's liquidity provides a supportive environment for enterprises to thrive, he added.
Hong Kong’s stock market has grown steadily over the past decade, with total market capitalization rising from HK$23 trillion to more than HK$47 trillion. Average daily turnover this year has exceeded HK$270 billion.
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Chan noted that international capital continues to find attractive allocation options in Hong Kong’s financial ecosystem.
The 2026 Global Wealth Report published by United States-based global management consulting firm Boston Consulting Group estimated that Hong Kong’s cross-border wealth management assets have grown 10.7 percent year-on-year to about HK$23 trillion in 2025, overtaking Switzerland to be the world’s top cross-border wealth management center.
Chan said the figure is ahead of the government’s original target, calling it a vote of confidence from domestic and overseas capital in Hong Kong’s institutions and investment environment.
Hong Kong’s significant investment in innovation and technology is increasingly translating into new growth drivers for the economy, but this effort must be intensified and accelerated, he said.
Contact the writer at grace@chinadailyhk.com
