On July 30, Professor Sun Dong, Secretary for Innovation, Technology and Industry of Hong Kong, outlined the key objectives of the optimized Innovation and Technology Venture Fund (ITVF) during a signing ceremony for the Victoria Harbour Link Technology Fund.
The initiative aims to nurture and scale up startups in strategic industries, which are vital to Hong Kong's future innovation ecosystem. Under the refined plan, the government will prioritize supporting startups in artificial intelligence and data science, life and health technologies, and advanced manufacturing and new energy technologies, helping them secure a foothold in these sectors.
Professor Sun noted that the Victoria Harbour Link Technology Fund is the first fund to complete fundraising under the optimized ITVF program and represents the first market-driven fundraising initiative in Hong Kong's history. He expressed hope that the fund would enable Hong Kong to act as a technology nexus, fostering more collaborative innovation and propelling the city's innovation and technology development to new heights. The full text of his remarks is as follows:
Good morning, esteemed guests, including Vice Mayor He Qing of the Shanghai Municipal People's Government, Deputy Minister Lu Feng of the Economic Affairs Department of the Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region, and all friends and colleagues.
I am delighted to attend the signing ceremony for the Victoria Harbour Link Technology Fund, the first joint fund successfully launched under the optimized ITVF program. I congratulate the team and thank the Shanghai municipal government for its strong support. Capital is a crucial nutrient for the growth of innovation and technology enterprises.
In recent years, the government has introduced a series of measures to reform its approach to investing in the innovation and technology sector, increasing support for local strategic industries, particularly the financing needs of startups. Over two years ago, we allocated HK$1.5 billion from the ITVF to launch the optimization plan, with the government acting as a limited partner (LP) and partnering with professional market fund managers. The matching ratio is 1:3, with one part from the government and three from the market. The response to the optimization plan exceeded expectations, with over 60 applications from fund managers, including many from top mainland institutions ranging from state-owned enterprises to local entities.
Today, I want to share the three key significances of the ITVF optimization plan. First, it represents a synergy between an effective government and an efficient market. To cultivate new productive forces and expand the innovation and technology industry, government support alone is insufficient. It is essential to attract and leverage more market forces to develop patient capital. The government will continue to play a guiding and facilitating role while adhering to market-oriented operations to maximize investment returns and promote the development of Hong Kong's innovation and technology industry system.
Second, the plan aims to support strategic industry startups in scaling up. Startups are the source of the innovation and technology industry, and strategic industries are a key pillar of Hong Kong's future innovation ecosystem. Under the optimized plan, we focus on supporting startups in artificial intelligence and data science, life and health technologies, and advanced manufacturing and new energy technologies, helping them establish a firm foothold in these fields. I am pleased to learn that the Victoria Harbour Link Technology Fund intends to invest in projects supported by the "Research, Academic and Industry Sectors One-plus Scheme," demonstrating that high-quality research projects will gain market recognition and accelerate commercialization through market forces.
Third, the plan seeks to form strong alliances with capable capital to help startups "go global." Leveraging Hong Kong's unique advantages of being backed by the mainland and connected to the world, as an international financial center, it serves as an ideal investment platform for domestic and overseas enterprises, acting as a "super connector" and "super value adder." The ITVF welcomes domestic and international funds to support the local innovation and technology industry and leverage its extensive network to help innovation and technology enterprises expand globally. The Victoria Harbour Link Technology Fund is a key project where Shanghai state-owned capital is deeply involved in Hong Kong's innovation and technology ecosystem development. I believe that with your rich experience, it will further enrich the local innovation and technology ecosystem and build a bridge for innovation and technology collaboration between Shanghai and Hong Kong.
In conclusion, the Victoria Harbour Link Technology Fund is the first fund to complete fundraising under the optimized plan and the first market-driven fundraising fund in Hong Kong's history. I hope the fund will live up to its name, enabling Hong Kong to play its role as a technology nexus, promote more innovation and technology cooperation, and drive Hong Kong's innovation and technology industry to a new level. Finally, I wish the Victoria Harbour Link Technology Fund smooth operations, and all of you good health and success in your endeavors. Thank you.
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