Hong Kong to be global hub for ‘patient capital’ by nurturing tech start-ups: Paul Chan Hong Kong is in a prime position to be a global hub for “patient capital”, an investment strategy that takes a longer view and is driven by “purpose and impact”, as it continues to advocate for technology start-ups, Financial Secretary Paul Chan Mo-po said on Thursday. Patient capital plays a critical role in supporting innovation, though it carries higher risks because of extended time frames and uncertain outcomes, Chan said at the inaugural International Forum for Patient Capital hosted by the Hong Kong Investment Corp (HKIC), the government investment arm. “In Hong Kong, we understand the importance of patient capital in our pursuit of a more diversified economic structure with leading-edge competitiveness,” he added. The HKIC would act as “a co-investor and a collaborator”, working alongside partners to support sectors where it saw long-term potential and where Hong Kong had clear advantages, he said. “There is no better place than Hong Kong to host this initiative,” Chan said, touting the city’s free flow of capital, goods, talent, information and its independent legal system. About 400 attendees representing 80 global long-term investors were at the forum, according to Clara Chan Ka-chai, CEO of the HKIC. They had total assets under management of more than US$20 trillion. Attendees represented sovereign wealth funds, pension funds, university endowments, family offices and venture capital firms from Europe, the US, Australia, Japan, the Middle East and Southeast Asia. Chan of the HKIC said most of the represented investing entities did not want their names released to the public as they sought to be “low profile”, though she added that they “really want to capture the growth trends in this part of the world”. “The reason we want to bring this diverse group of people here is we believe that Hong Kong is a great hub,” she said, adding that HKIC could match global capital with local communities and companies. Some international speakers included representatives from Stride Ventures, an India-based venture capital firm investing domestically and in countries from the Gulf Cooperation Council, Southeast Asia and the UK, as well as two Australian firms: Virescent Ventures and StB Capital Partners. The HKIC, which manages HK$62 billion (US$8 billion) worth of funds, has invested in more than 100 projects and attracted HK$4 of long-term private capital for every Hong Kong dollar it invested. About five to 10 firms in its portfolio “have expressed interest” in filing for initial public offerings in Hong Kong this year, and some have done so already, according to the HKIC’s Chan. The HKIC will host two more international events this year: one on embodied artificial-intelligence (AI) robots and the other related to young scientists and AI. Terry Zhu, managing partner of Beijing-based Lanchi Ventures, whose funds have more than US$2 billion in assets under management, said his firm was an active investor in Chinese-owned AI ventures originating within China and abroad. “Over half of the Chinese AI entrepreneurs [established] their start-ups initially from overseas markets, before coming back to China to develop the market and then the global market,” he said. Hong Kong, a global talent hub with a developed start-up ecosystem that includes universities, patient capital, tax incentives, a robust legal system and flexible data policies, is in a unique position to serve as a bridge between the mainland and the rest of the world, he said. “HKIC, as a typical institutional patient capital provider, is our strategic partner,” he said. “Together, we have invested in top-tier Chinese talents’ start-ups. We will see more investments coming this year.” “Looking to the future, fragmentation has no doubt cast a shadow over global growth and investment flows,” Financial Secretary Chan said. “But even in fragmentation, opportunities emerge.” https://www.scmp.com/business/banking-finance/article/3311374/hong-kong-be-global-hub-patient-capital-nurturing-tech-start-ups-paul-chan (ICE HONG KONG)

Fonte notizia: South China Morning Post