As China intensifies its focus on technological innovation to drive high-quality growth, the Hong Kong Special Administrative Region is strategically positioning itself to leverage its robust capital markets and global investor base. This transformation aims to establish Hong Kong as a pivotal hub for technology finance, facilitating Chinese technology firms in overcoming funding constraints and connecting with international capital.
The ongoing discussions occur against the backdrop of Hong Kong’s plans to draft its inaugural five-year development blueprint, aligning with the forthcoming 15th Five-Year Plan (2026-30) of the nation. Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, has committed to fostering deeper integration between finance and innovation, alongside expanding financing channels for sectors such as artificial intelligence and life sciences.
During the fourth session of the 14th National People’s Congress in Beijing, Hendrick Sin, a deputy from Hong Kong and founding partner of China Prosperity Capital, emphasized the necessity for Hong Kong to strengthen its dual role as a centre for finance and innovation. He expressed hopes for the city to develop disruptive AI applications in areas where it possesses existing strengths, including financial risk management and drug discovery, while also nurturing more homegrown unicorn startups.
In recent years, Hong Kong has implemented a series of policy tools to support this transformation. The HK$10 billion (approximately $1.28 billion) Research, Academic and Industry Sectors One-plus Scheme has approved 49 projects since its launch in October 2023, with several set to enter the market in stages. Additionally, the HK$10 billion Innovation and Technology Industry Oriented Fund is slated to commence operations later this year, as announced in the 2026-27 Budget.
Sin noted that the fund will act as a market signal, directing private capital towards strategic sectors such as life sciences, AI, and robotics. Furthermore, regulatory reforms will include a review of listing requirements for enterprises with weighted voting right structures, addressing the financing needs of technology firms.
Hong Kong Exchanges and Clearing Ltd has already introduced Chapter 18A to facilitate the listing of prerevenue biotech companies, and Chapter 18C to accommodate preprofit specialist technology companies in sectors like next-generation information technology and advanced materials. The exchange is also evaluating listing rules to attract aerospace companies.
Sin described these developments as ‘very forward-looking’, highlighting that the space sector is capital-intensive and technology-heavy, with long development cycles. He asserted that Hong Kong has the potential to become a global fundraising hub, particularly in light of the burgeoning commercial space industry.
Listing in Hong Kong offers companies access not only to local liquidity but also to a broad base of global institutional investors. Sin remarked, ‘Recognition from international capital markets is itself a powerful endorsement of corporate value.’
Following its achievement as the top global location for IPO fundraising in 2025, PwC estimates that approximately 150 companies are expected to go public in Hong Kong in 2026, raising between HK$320 billion and HK$350 billion. New-economy firms, especially those under Chapters 18A and 18C, are anticipated to dominate the pipeline.
Li Yinquan, another national lawmaker from Hong Kong and director of China Merchants Capital Investment, highlighted Hong Kong’s position as the world’s largest offshore renminbi hub, which could bolster its aspirations as a technology financing centre. He believes that enhancing the international use of the Chinese currency will broaden the capital pool available for technology investment.
According to the Hong Kong Monetary Authority, the city holds the largest renminbi liquidity outside the Chinese mainland, facilitating over 70 percent of global offshore RMB payments. Li proposed the establishment of a comprehensive issuance and circulation mechanism for international RMB products in Hong Kong, integrating messaging functions akin to the SWIFT system with payment, trading, and clearing services for offshore RMB.
This proposed system could adjust the supply of RMB in accordance with international demand, gradually increasing the currency’s circulation in global markets. Li further suggested that a more dynamic financial market would enhance the balance sheets of Hong Kong’s banks, investment firms, and private capital funds, enabling them to channel greater investment into technology companies and innovation-driven projects.
Given the high land and labour costs in Hong Kong, Li advised that the city should concentrate on laboratory research, pilot production, and demonstration manufacturing, while entrusting mass production and supply-chain integration to the mainland.