Hong Kong’s investment firm reports HK$2 billion return in 2024

[HONG KONG] Hong Kong Investment Corporation (HKIC) generated more than HK$2 billion (S$335.5 million) in investment income in 2024, boosted by initial public offerings and bets on biotechnology firms.

The figure comes three years after the fund was established in 2022, to promote the city’s economy and industries, and strengthen ties with the Chinese mainland cities surrounding Hong Kong.

As of the end of last year, the firm had deployed less than 20 per cent of its initial HK$62 billion, HKIC chief executive officer Clara Chan said in a Bloomberg TV interview with Annabelle Droulers and Yvonne Man.

“This is actually in perfect alignment with what we have set out for,” Chan said, referring to the investment pace and return. “We need to balance the speed with investment risk.”

The fund has now entered a second phase, and is looking to make bigger bets with regional partners, such as sovereign funds, pension plans and corporates.

Investors in South-east Asia and the Middle East are interested in investing in Hong Kong and China companies, Chan said.

HKIC is planning to scale up investment in a “more systematic manner” in the coming year, she said. 

Investments, which are made through four portfolios targeting different stages and sectors, have so far been made into some 150 companies in industries, including technology and biotechnology. 

“A lot of the growth drivers, I think, have been the biotech companies,” she noted.

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Its portfolio companies are exploring options, including public listings in Hong Kong, as well as mergers and acquisitions. 

Two Hong Kong listings have generated “double or triple” internal returns for the fund, said Chan, who declined to provide the names or timeframe of these investments.

On top of the initial capital injected by the government, HKIC is also receiving about HK$2.8 billion in fresh funds from the city’s capital investment entrant scheme, she said. BLOOMBERG