AI, biotech and new energy likely targets of HKIC yuan fund
Hong Kong government’s investment arm to set up yuan-denominated venture capital fund aimed at investors seeking exposure to China currency
The Hong Kong government’s planned offshore yuan-denominated venture capital fund is set to attract investors looking to invest in a wide range of artificial intelligence, biotechnology and new energy firms in the coming years, according to industry players.
“There are a lot of companies and investors who have offshore yuan, and would like to use the currency to make investments,” Chan told lawmakers without giving more details.
HKIC was expected to invest the new yuan fund into hardcore technology, biotechnology and health tech, new energy and green technology, alongside start-ups in AI, fintech and aerospace, said Benjamin Quinlan, CEO and managing partner at Hong Kong-based consultancy Quinlan & Associates. The government’s investment arm had identified these areas as its major investment focus, he added.
“Companies with a mainland [China] or Hong Kong founder base that are looking to go global could be particularly relevant, especially if they can use Hong Kong as a platform for research and development, commercialisation, financing, regional expansion or eventual listing,” Quinlan said on Tuesday in an interview with the South China Morning Post.
Given HKIC’s expectations that investees establish offices in the city and prioritise it for listing, Quinlan said the fund could be viewed as a strategic capital tool that would support Hong Kong’s development.
Lawmaker Robert Lee Wai-wang, who is also chairman of Hong Kong-based Grand Finance Group, said it was the right time to launch this type of fund.