The Hong Kong Investment Corporation's outstanding performance last year demonstrates the viability of the city’s dual engines of innovation and finance, according to Francis Fong Po-kiu, honorary president of the Hong Kong Information Technology Federation.
The HKIC nearly tripled its investment income to HK$6.4 billion in 2025, with a net internal rate of return of 14 percent.
Fong stated that, as "patient capital" that has only been established for a short time and shoulders the dual mission of generating social benefits and guiding industry development, the HKIC's performance has undoubtedly surpassed market expectations.
It has injected a powerful shot in the arm into Hong Kong's innovation and technology and financial sectors at a critical juncture in their transformation, he said.
The firm's performance does not pale in comparison to that of other government-backed investment corporations worldwide, said Billy Mak Sui-choi, associate professor of the Department of Accountancy, Economics and Finance at Hong Kong Baptist University.
Most enterprises invested by the HKIC are in the early and growth stages, which means their valuations will only increase significantly after their products mature, they achieve profitability, or even meet the threshold for a public listing, Mak said.
Because the HKIC operates like a venture capital fund, it does not need to earn a profit from every investment, he said.
As long as the returns from the standout companies are high enough to offset the losses from the failed projects, the overall portfolio can still maintain a reasonable rate of return, he added.
