The Hong Kong government has officially unveiled a HK$25 billion ($3.2 billion) Innovation and Technology Fund designed to cement the city’s position as a leading hub for global entrepreneurship.
The fund, announced in August 2025, will provide direct grants, tax incentives, and expedited visa approvals for start-ups and skilled professionals in key sectors including fintech, biotech, and artificial intelligence. The initiative forms part of a broader economic diversification strategy, aiming to reduce Hong Kong’s reliance on finance and real estate while nurturing a sustainable innovation ecosystem.
For start-ups, the fund offers substantial benefits: cash subsidies for early-stage development, preferential office space in science parks, and connections to local universities and corporate partners. Meanwhile, global entrepreneurs will benefit from streamlined visa programs that allow for quick relocation to Hong Kong, addressing one of the city’s historical weaknesses in retaining international talent.
Venture capitalists and private equity players have responded positively, viewing the initiative as a signal that Hong Kong is ready to compete with Singapore and Shenzhen in the regional innovation race. However, analysts caution that high operating costs, housing expenses, and lingering political tensions could still deter long-term talent retention.
Despite these challenges, the $3.2 billion fund is expected to boost Hong Kong’s innovation profile significantly. If effectively implemented, it could trigger a wave of cross-border collaboration, with global start-ups using Hong Kong as a launchpad to expand into the Greater Bay Area and Southeast Asia.
Hong Kong, innovation fund, entrepreneurship, technology, talent attraction
