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Daisy Wu

The Hong Kong Investment Corporation (HKIC) recorded a major jump in investment income during its second year of operation, as it expanded its role as the city’s “patient capital” engine driving local economic development.
The wholly state-owned investment firm generated about HK$6.46 billion (US$824 million) in investment income in 2025, a stunning 175 per cent year-on-year increase, according to its latest financial report released on Thursday.
The fund achieved a net internal rate of return of 14 per cent, an impressive return that indicates the vehicle has already defied the typical early-stage “J-curve” downturn typically seen in new venture capital funds, as HKIC’s CEO confirmed during a meeting of the Legislative Council’s Financial Affairs Panel last month.
The firm’s robust performance reflects improving returns across its expanding portfolio of more than 200 projects, officials stated. Ten companies in HKIC’s portfolio had already listed in Hong Kong as of March, while more than 30 others were waiting for their listing applications to be approved.
Financial Secretary Paul Chan Mo-po, who also chairs the HKIC, said the investment vehicle had entered a new phase of development by accelerating a “capital – technology – talent” cycle to support Hong Kong’s economic growth.
“We are translating strategic priorities into a thriving ecosystem that reinforces Hong Kong’s role as a ‘superconnector’ and ‘super value-adder’ on the global stage,” Chan said.
The HKIC was more than a professional and market-driven investor, leveraging capital strategically to foster innovation, attract global technology talent and enterprises, and support long-term growth, he added.
Chan reiterated that the government would arrange a capital injection into the HKIC in a timely manner, as he previously noted in his latest budget that the fund had already deployed almost all of its available capital. The size of the potential capital injection has yet to be disclosed.
Established in late 2022 under an initiative proposed by Chief Executive John Lee Ka-chiu, the HKIC was created to optimise the deployment of the city’s fiscal reserves by consolidating four government-led investment vehicles, as well as better support Hong Kong’s industrial transformation and long-term economic restructuring.
For the financial year ended December 2025, the corporation posted an operating profit of HK$6.3 billion, up 181 per cent year on year, on total assets of HK$69.7 billion, according to the report.
The fund has also shown a strong multiplier effect, with every HK$1 invested by the HKIC attracting more than HK$8 in long-term co-investment from private and institutional backers, the report added.
The HKIC has steadily funnelled capital into strategic sectors, with a heavy focus on frontier technologies. As of the end of December 2025, the fund had backed more than 170 projects across hi-tech sectors including artificial intelligence, biotechnology, green energy, financial technology and aerospace.
The vehicle has also signalled strong confidence in cross-border integration. Out of its total deployed capital, 47 per cent was allocated to companies in mainland China, 28 per cent went to local Hong Kong enterprises, and the remaining 25 per cent was deployed overseas.
“With our unique mandate and role, the HKIC is well placed to act as the two-way bridge in maximising the synergy between Hong Kong’s traditional strengths such as finance, and emerging strengths such as innovation and technology as well as talents,” said Clara Chan Ka-chai, CEO of the HKIC.
Looking ahead, she said the fund would continue to expand its investment focus into frontier sectors including next-generation artificial intelligence, brain-computer interfaces, commercial aerospace, cross-border digital infrastructure and quantum computing.
HKIC’s impact extends beyond financial returns, according to the report. Its investments have made substantial contributions to Hong Kong’s local economy, including supporting the rental of over 5 million sq ft of commercial space, enabling the creation of about 7,200 jobs and fostering the development of 316 intellectual property assets, as well as contributing to 258 events and 170 collaborations with local universities.
“HKIC is investing for the long term and delivering impact that goes beyond strong financial returns,” said Oliver Weisberg, CEO of Blue Pool Capital, a Hong Kong-based investment manager and the family office of Joe Tsai, chairman of Alibaba Group Holding. Alibaba owns the South China Morning Post.
“It is bolstering the economic ecosystem of Hong Kong and supporting both mainland Chinese and Hong Kong enterprises to expand around the world,” Weisberg added.
While primarily focused on technology and innovation, the vehicle is being selectively redeployed to support the city’s sluggish real estate sector. Through partnerships with regional and international providers of “long-term capital”, the fund will channel investments into “high-quality commercial projects”, according to the city’s latest budget, published in March.
In June, the government moved to further expand the HKIC’s mandate, unveiling a plan for an offshore yuan-denominated venture capital fund. The initiative is designed to steer capital into high-growth industries while reinforcing Hong Kong’s broader ambition to strengthen its role as a global hub for yuan internationalisation.


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The government-owned investment firm generated nearly HK$6.5 billion in its second year, as Hong Kong’s economic vision begins to take shape


The government-owned investment firm generated nearly HK$6.5 billion in its second year, as Hong Kong’s economic vision begins to take shape.


HKIC reports double-digit investment return as ‘patient capital’ strategy bears fruit

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The government-owned investment firm generated nearly HK$6.5 billion in its second year, as Hong Kong’s economic vision begins to take shape

The government-owned investment firm generated nearly HK$6.5 billion in its second year, as Hong Kong’s economic vision begins to take shape