Hong Kong government venture fund seeks more capital after strong returns

Hong Kong Investment Corporation (HKIC), the city's government-backed venture fund, is seeking additional capital after achieving a double-digit internal rate of return in 2025, surpassing many newly established venture capital funds. CEO Clara Chan Ka-chai announced that the fund earned HK$2.3 billion (US$293 million) in 2024 and has bypassed the typical J-curve of initial losses. The strong performance, to be detailed in HKIC's annual report next month, stems from many of its 200 investment projects meeting growth targets. Financial Secretary Paul Chan Mo-po plans to inject more funds, as HKIC has nearly exhausted its current capital. Established in 2022 with government reserves, HKIC manages HK$62 billion (US$8 billion) and focuses on boosting Hong Kong's economy and innovation industry, distinct from the Hong Kong Monetary Authority's financial investments. Lawmakers expressed support but requested more details on the injection size, which the government will disclose later.