Chan: Nurturing tech firms is key to city’s economic growth

Financial secretary says HK needs to provide incubation support for companies

Financial Secretary Paul Chan Mo-po said on Sunday the key to Hong Kong’s economy and its capital market is providing tech companies with favorable incubation and financing conditions, as well as building a comprehensive ecosystem that integrates upstream, midstream and downstream industries.

“Science and technology innovations are continuously giving rise to new business models, new forms of business and new industries, which not only bring new growth momentum to the real economy, but also bring new themes to the capital market,” Chan said in his weekly blog.

An example is last week’s stock market rally, which was led by the surge in prices of Chinese-mainland technology shares.

The city’s benchmark Hang Seng

Paul Chan Mo-po, Hong Kong financial secretary

Index gained 8.8 percent in five days, marking its biggest weekly gain since 2012. The tech gauge rose more than 13 percent.

Enterprises that can provide solutions to pain points and valuecreating products or services through leading-edge core technologies and innovative business transformations — such as artificial intelligence, big data, biomedical technology and new energy — can capitalize on the opportunities, achieve strong business growth, and generate substantial returns for investors, Chan said.

The number of startups in Hong Kong exceeded 4,200 last year, an increase of more than 30 percent over four years ago, with about one-quarter of the companies’ respective founders coming from outside the city, Chan said. “In the past year, we have successfully attracted nearly 50 key startups to set up or expand their operations in Hong Kong,” he said.

This month, the Hong KongShenzhen Innovation and Technology Park welcomed its first batch of partners from some 60 companies and organizations, with their investment expected to top HK$1 billion ($128 million), paving the way for deeper crossboundary technology collaboration.

The 87-hectare park’s strategic importance lies in its location at the Lok Ma Chau Loop, northeast of Yuen Long, on the Hong KongShenzhen border and the banks of the Shenzhen River.

Apart from those from Hong Kong and the mainland, about a quarter of the companies are from overseas, including the United States, France, Japan, the United Kingdom, Australia, Thailand and Singapore, according to Hong Kong officials. About two dozen of the companies are either new to or expanding their respective businesses in Hong Kong.

Science and technology innovations are continuously giving rise to new business models, new forms of business and new industries, which not only bring new growth momentum to the real economy, but also bring new themes to the capital market.”