Hong Kong Investment Corp, the fund recently set up by the city’s government, isn’t going to be deterred by global politics when it deploys cash, according to its chief executive officer.
“Geopolitics, like other risks, they are like a given for our underwriting right now,” CEO Clara Chan said in a Bloomberg Television interview on Wednesday. “But the power of ‘patient capital’ is that we can transcend cycles.”
Picking the right themes and investing early are critical to navigate the challenge, Chan added. “So the noises and the rumours, and everything in between, I would say that they could actually be a positive window for us to go into the market.”
Chan is the first CEO of HKIC, which was set up by the local government in 2022 with HK$62 billion in capital to to promote the economy and industries and enhance ties with Chinese mainland cities surrounding Hong Kong.
As well as financial returns, the fund’s priority is to invest in areas that support new growth in Hong Kong, such as innovation and technology, Chan said. It has already invested in more than 120 projects, with a focus on technology including artificial intelligence, as well as biotech and new energy.
Enterprises in its portfolio include Phase Scientific International, EcoCeres and Beijing Galbot Co. With two portfolio companies listed in Hong Kong, it has more than 10 others that are seeking IPOs in the city this year.
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As well as Hong Kong and mainland China, it’s also investing in companies from other markets. “We definitely need to cast the net as wide as possible,” Chan said. “We have to attract the smartest minds from around the world as companies to come and develop in Hong Kong.”
The fund is bringing portfolio companies to meet with other sovereign wealth funds and corporate investors, including those in Belt and Road countries and Southeast Asia, she said.
Chan said listings won’t always result in the firm cashing out of investments, given its mandate to support growth in Hong Kong.
“The Hong Kong stock market is great, I’m sure it will continue with its great momentum,” she said. “The expiry of a lockup period does not necessarily mean an automatic exit of the company.”
