Hong Kong Investment Corporation (HKIC) is seeking to diversify its portfolio beyond technology into sectors such as education and financial services.
The government-owned firm has concentrated on the technology sector since it was established in 2022 with a capital of HK$62 billion (US$7.94 billion) with the aim of attracting investments from China and globally.
It has invested in more than 150 projects across the biotechnology and green technology sectors.
Clara Chan, chief executive officer of HKIC, discussed the company’s strategic shift into other sectors during a one-on-one talk with a Bloomberg reporter at an investment forum in Hong Kong on June 10.
She said the company is exploring investment opportunities, particularly in financial services, including offshore renminbi-related businesses, and education.
“We see the bright future of Hong Kong because of its talent pool, so we definitely want to do more in terms of education,” she said. “One of the potential areas is student housing, where the fund [HKIC]is permitted to invest.”
According to Chan, HKIC can support government measures to bolster Hong Kong’s role as an offshore RMB hub. She pointed to a blog post earlier this year by Paul Chan, Hong Kong’s financial secretary, where he wrote that the government is planning to diversify the scope of RMB-denominated products in Hong Kong and to setup an RMB venture capital fund.
She said HKIC itself is close to launching RMB venture funds.
“Hong Kong has a deep RMB capital pool, and we aim to leverage this traditional advantage. Our key investors in the Middle East and Southeast Asia have high confidence in the offshore RMB market,” she said.
She also said HKIC has nearly exhausted the HK$62 billion capital from the government. She said the timing and process for topping up funding for existing projects will depend on factors such as contractual fee arrangements, specific investment themes, and contributions from other international partners.
