Hong Kong Launches $10 Billion Fund to Enhance Innovation and Technology

Hong Kong Unveils HKD 10 Billion Innovation and Technology Industry Guidance Fund

In a significant move, Chief Executive John Lee of the Hong Kong Special Administrative Region has delivered his third Policy Address, announcing a groundbreaking initiative aimed at bolstering the local economy and positioning Hong Kong as a global hub for innovation. The announcement includes the establishment of a HKD 10 billion Innovation and Technology Industry Guidance Fund.

Purpose of the Innovation and Technology Fund

The primary goal of this fund is to create a parent fund designed to attract market investments into strategic emerging industries, particularly in the realm of artificial intelligence (AI). This initiative is expected to foster a robust ecosystem for innovation and technology in the region, paving the way for future advancements and opportunities.

Key Highlights from the Policy Address

• Investment in Strategic Industries: The fund aims to systematically build an innovation and technology industry ecosystem in Hong Kong.
• Focus on Artificial Intelligence: The fund will specifically target AI and other strategic emerging industries, acknowledging their potential for economic growth.
• Policy Guidance on AI in Finance: The Hong Kong Financial Services and the Treasury Bureau will issue a detailed policy statement outlining its stance on the application of artificial intelligence in financial markets.
• Regulation of Virtual Assets: The bureau has completed its second round of consultations regarding the regulation of over-the-counter virtual asset trading.

Future Steps and Considerations

As part of the initiative, the Treasury Bureau will also be submitting a proposed licensing regime for virtual asset custody service providers. This move indicates a commitment to the secure and regulated development of virtual assets, ensuring that Hong Kong remains competitive in the quickly evolving financial landscape.

Conclusion

The introduction of the HKD 10 billion Innovation and Technology Industry Guidance Fund signifies Hong Kong's commitment to becoming a leader in technology and innovation. With strategic investments in AI and a robust regulatory framework for virtual assets, Hong Kong is poised to attract global talent and investment, solidifying its position as a formidable player in the technology sector.