Hong Kong government’s venture fund eyes bigger bankroll after double-digit return
Hong Kong Investment Corporation says it earned a double-digit return in 2025 and may get more funding soon. The government also plans a new offshore yuan venture capital fund.
Intelligence analysis by GPT-5.4 Mini
Hong Kong’s state-backed investment arm says it has moved past the early losses common to venture funds, reporting strong returns and near-full deployment of its capital. The government is now weighing a bigger injection, while also preparing a new yuan-denominated venture fund.
Hong Kong has a government-backed money pot that invests in new ideas and growing companies. The people running it say it has done well, like a garden that has started to grow strong plants after a slow beginning.
The city may put even more money into that pot because most of the current money has already been used. That means the group can keep backing more tech and business projects.
It also plans a new fund in offshore yuan, which is like opening another savings jar in a different currency so it can help more startups in a new way.
Analysis
What happened
Hong Kong Investment Corporation (HKIC), the government’s investment arm, said it achieved a double-digit internal rate of return in 2025. CEO Clara Chan Ka-chai told lawmakers that HKIC had already passed the early “J-curve” phase that often hits venture funds, after earning HK$2.3 billion in 2024 and then posting a double-digit return in 2025.
Why the government is considering more money
The performance will be detailed in HKIC’s annual report next month, but lawmakers were already discussing Financial Secretary Paul Chan Mo-po’s plan to add more funding. Chan said the size of the new injection would be announced later, and argued that more capital would be needed soon because HKIC had already invested almost all of the money it currently had available.
What HKIC is for
HKIC was set up in 2022 with backing from government reserves to support Hong Kong’s economy and innovation sector. As of March, it managed HK$62 billion in public funds. Chan contrasted HKIC’s role with the Hong Kong Monetary Authority, saying the HKMA’s investments are mainly in finance vehicles, while HKIC is meant to channel money into innovation and technology development that can support the city’s future economy.
Extra policy signal
The article also says HKIC will take the lead on a new offshore yuan-denominated venture capital fund. That suggests the government is not only adding firepower to its existing tech investment arm, but also trying to build new funding routes tied to the yuan and to cross-border finance.
Key points
- HKIC said it posted a double-digit internal rate of return in 2025.
- The fund had already earned HK$2.3 billion in 2024, according to its CEO.
- The government is considering adding more money to HKIC soon.
- HKIC said it has already invested almost all the capital it currently has on hand.
- HKIC will also lead a new offshore yuan-denominated venture capital fund.
