'HK a strategic adaptation ground for mainland firms'

Hong Kong is no longer just a fundraising bazaar for mainland tech firms, it is now a "strategic adaptation ground" where hard-tech champions reshape governance and supply chains for global markets, according to Financial Secretary Paul Chan on Sunday.

Writing on his weekly blog following a trip to Shanghai and Nanjing, Chan observed a fundamental shift in ambition among mainland tech leaders after visiting enterprises spanning artificial intelligence, semiconductors, biotechnology and the low-altitude economy.

These firms, he noted, already possessed solid technological foundations and business models validated in the domestic market, and their products were now entering international marketplace.

Yet the challenge they face is no longer simply exporting goods — it is a far more complex puzzle: how to connect with global capital, scout international partners and clients, strategically deploy production capacity and manage cross-border corporate treasury.

Their goal, Chan wrote, is to seize the critical window of rapid AI development to cement domestic growth while aggressively expanding globally.

The finance chief said that a growing number of tech executives have explicitly declared their determination to become full-fledged multinational enterprises — entities whose markets, capital structures, governance systems, talent pools and research and development and supply chains are thoroughly interwoven with the rest of the world.

In this pursuit, Chan noted, a growing cohort is deliberately choosing Hong Kong as their strategic launchpad.

They are placing their trust in the city's international investor networks and globalised platforms, viewing Hong Kong as the definitive nexus connecting "China's technological innovation with global capital”.

Crucially, Chan stressed that these companies' expectations of Hong Kong have transcended its conventional function as an IPO venue.

He enumerated the specific institutional assets drawing them in: the common law system, unfettered capital flows, internationally aligned financial reporting and corporate governance standards, a worldwide investor network, and the operational convenience of bilingual professional services.

For mainland tech enterprises, Chan said, Hong Kong is the gateway to the world; for international capital, it is the clearest window into China's innovation ecosystem.

This two-way dynamic, he wrote, is the living embodiment of Hong Kong's role as a "super-connector" and "super value-adder."

Edited by Tony Sabine ...