Clara Chan, once called ‘goddess’ for her role in Cathay Pacific rescue, is the new boss of Hong Kong’s version of Temasek

Clara Chan Ka-chai, the incoming CEO of the new government investment company which will oversee HK$62 billion (US$8 billion) of funds, is not new to deal-making challenges, having earned the moniker “goddess” for her role in rescuing the city’s flagship carrier from collapse during the pandemic.

Her successful management of a government-funded, multibillion-dollar bailout of Cathay Pacific during the pandemic is considered the main reason for her being picked for the top job at Hong Kong Investment Corporation (HKIC), Hong Kong’s version of Singapore’s sovereign wealth fund Temasek, which manages a US$278 billion portfolio.

Chan, currently the executive director of monetary management at the Hong Kong Monetary Authority (HKMA), will leave the de facto central bank next Monday, to take up the reins at HKIC, according to an HKMA statement. She is the first CEO of the newly formed HKIC, which will run four funds with an aggregate size of HK$62 billion.

The funds include the HK$30 billion Co-Investment Fund to attract businesses to the city through investment in their companies, similar to one that is managed by Temasek.

The other funds include the HK$32 billion Hong Kong Growth Portfolio, which comprises a HK$5 billion Strategic Tech Fund and a HK$5 billion Greater Bay Area Investment Fund, whose focus is on investment opportunities in the development area that includes Hong Kong, Macau and nine mainland cities in China’s southern Guangdong province.

The Co-Investment Fund was among a string of initiatives announced by Chief Executive John Lee Ka-chiu in his first policy address last October, as part of the government’s investment-led strategy to encourage economic development by attracting enterprise, investment and talent.