HKIC ends year on high note but Hong Kong cost of living a drawback for attracting talent
Government-backed fund strengthens VC ecosystem and fosters collaboration, but the city’s high cost of living remains a challenge
The success of the government’s Hong Kong Investment Corporation (HKIC) in establishing an ecosystem for start-ups to raise funds has put a damper on the Christmas plans for employees of some local venture capital (VC) firms.
“After partnering with the HKIC, the number of deals we are working on this year has tripled compared to last year,” said David Chang, founder and CEO of leading VC firm MindWorks. He added that 2025 was one of the busiest years for the firm since its establishment 11 years ago.
“I have told some of my staff that they will not have Christmas holidays as they need to focus on closing numerous ongoing deals,” Chang said.
The HKIC, first announced in Chief Executive John Lee Ka-chiu’s 2022 policy address, was set up to use the government’s reserves to boost the city’s economy.
It managed HK$62 billion (US$8 billion) in funds and invested in more than 150 projects as of October, with 62 per cent of deployed capital going to mainland China and 34 per cent to Hong Kong. Of the projects, 71 per cent were in hi-tech, 13 per cent in biotech and 11 per cent in renewables and green technology.
Financial Secretary Paul Chan Mo-po said HKIC had a dual mandate: to generate reasonable returns and enhance the long-term competitiveness and economic vitality of Hong Kong.