HKIC wealth fund to strike maiden investments in June in technology, biotech, new energy

Government-owned Hong Kong Investment Corporation (HKIC), which manages HK$62 billion (US$8 billion) of funds, will make its first batch of investment in start-ups this month as authorities seek to strengthen innovation and technology as a core pillar to provide sustainable economic development in the city.

“We will make our first batch of direct investment or co-investment this month in a number of start-ups in three major sectors – hard and core technology, biotechnologies, and new energy and green technologies,” said Clara Chan Ka-chai, CEO of HKIC, in her first interview after taking the role in October.

A potential candidate in the first batch of investments will be a home-grown unicorn Smartmore, an artificial intelligence (AI) player, according to a source familiar with the situation who declined to be named as the deal is private.

HKIC will sign a strategy partnership agreement with Smartmore on Wednesday for developing the industry in the Greater Bay Area, according to the source.

The HKIC, established in October 2022, manages four funds, including a HK$30 billion Co-Investment Fund set up to attract businesses to the city through investment in their companies. The other funds include the HK$32 billion Hong Kong Growth Portfolio, which includes 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.