Hong Kong to boost impact investment sector with start-up and innovation focus

Hong Kong can take a more active role in the multibillion-dollar impact investment sector by developing a thriving ecosystem that includes more start-ups, offers innovative financial products and upholds world-class standards, the finance chief has pledged.

Financial Secretary Paul Chan Mo-po said on Sunday that the initiative was part of the city’s commitment to making the world more sustainable. He noted that last year, the capital involved in impact investment had reached US$1.6 trillion and could rise to US$6 trillion by 2031.

“We must foster collaboration among stakeholders, drive cross-sector synergies, and connect them with socially beneficial initiatives to maximise their effectiveness and influence,” he said, emphasising Hong Kong’s status as home to numerous family offices, charitable organisations, foundations and international investing networks.

According to the Financial Services Development Council, impact investing has become a powerful catalyst for positive change in the financial landscape, with investors increasingly aiming to align their capital with values addressing global challenges such as climate change, poverty and inequality.

“An important part of this ecosystem is start-ups,” Chan said in his weekly blog.

“Their cutting-edge technologies, innovative products and solutions can help propel the region and the world towards fairer and more sustainable development across diverse sectors such as green transition, healthcare, financial services and education.

“These also present investors with promising investment opportunities. By leveraging Hong Kong’s dual strengths in finance and innovation technology to foster mutual advancement, we can inject fresh momentum into the city’s development.”