AI-focused tech companies to make HK their home

Caroline Zheng

Financial Secretary Paul Chan Mo-po announced that a new batch of more than 10 key companies set to establish or expand operations in Hong Kong will be unveiled next month, with over half focused on artificial intelligence and big data.

The list, to be released by the Office for Attracting Strategic Enterprises, is expected to feature companies from the mainland, the US and Europe, including some industry leaders, Chan wrote on his blog yesterday.

Chan noted that market sentiment has significantly improved as the fourth quarter begins, with the Hang Seng Index reaching its highest level in about 2 1/2 years.

Over the past 15 trading days, the index surged more than 5,600 points - a 33 percent increase - bringing the market capitalization of Hong Kong stocks to HK$39.4 trillion, driven by China's stimulus policies and the US easing cycle.

The average daily turnover from September to last Friday was around HK$192 billion, double that of August, he added.

Chan believes the market recovery and optimism could drive many companies, especially those in innovation and technology, to accelerate their plans for listing in Hong Kong.

He also highlighted the continuous reform in the city's listing regime that he said made Hong Kong more appealing to innovation firms, with over 330 new economy companies listed here. KPMG stated in an earlier report that Hong Kong has regained fourth position as a global listing venue as of the third quarter, behind two stock exchanges in the US and India.

The renewed momentum could encourage more businesses to set up operations in the city, boosting demand for office space and other professional support services, Chan said.

He cited an example of a tech firm that recently secured 8,000 square feet in a Grade A office in Hong Kong as its global headquarters. The company plans to use it as an international hub for finance and research and development to explore its reach in Southeast Asia.

It comes as two major Grade A buildings in Central were leased to Chinese companies earlier this year, with over 6,000 sq ft of floor space at The Henderson leased by mainland auto manufacturer Brilliance Auto Group at a monthly rent of HK$792,000. A mainland financial institution rented over 8,000 sq ft at Cheung Kong Center II for HK$765,000.

The administration attracted 25 strategic enterprises in March following 30 firms in October 2023, including UK pharmaceutical giant AstraZeneca.

At the end of this month, Chan plans to lead a delegation to the Middle East to deepen ties and promote Hong Kong's latest developments and investment opportunities.