Opinion | How AI can catalyse Hong Kong’s next big economic take-off
Hong Kong’s economic story has always unfolded in cycles of innovation. Finance made it a global hub. Real estate later became a backbone. Both engines now face structural limits. As global competition intensifies, the question is what Hong Kong’s new growth engine will be.
The policy address offers a clear signal: artificial intelligence (AI) is a policy priority. With Hong Kong Investment Corporation (HKIC) tasked with channelling capital into frontier industries, AI has been elevated as a potential catalyst for the city’s next economic take-off. The opportunity is real, but success will hinge on whether capital, talent and infrastructure can be aligned into a coherent strategy.
Globally, AI is reshaping innovation. Last year, it commanded an outsize share of the US$314 billion in venture investment worldwide. But the distribution is far from balanced. Asia attracted just US$65.8 billion, a decade low, while US players like OpenAI and Anthropic raised sums that eclipsed entire regions. In the first quarter this year, Asia’s AI start-ups captured less than 10 per cent of global AI funding.
This imbalance highlights the gap between potential and resourcing. Closing it will require capital, regulatory capital, infrastructure and institutional support.
Encouragingly, the foundations are being laid. Hong Kong launched 42 initial public offerings (IPOs) in the first six months, raising US$13.5 billion in its strongest first-half tally since 2021. With more than 200 applications in the pipeline, Hong Kong is reasserting itself as a premier fundraising venue for AI and other tech companies.
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China’s largest EV battery maker CATL celebrates strong debut at Hong Kong stock market
China’s largest EV battery maker CATL celebrates strong debut at Hong Kong stock market
The start-up ecosystem is also maturing, with nearly 4,700 set up last year, up 10 per cent year on year and 40 per cent higher than in 2020. Close to 18,000 people work in local start-ups. The Hong Kong Science and Technology Parks Corp houses more than 2,400 firms, supporting 24,000 people, while the Hong Kong Applied Science and Technology Research Institute has transferred about 1,600 technologies to the industry and secured more than 1,000 patents in Hong Kong, mainland China, the United States and elsewhere.
Three in five multinational companies expect costs to rise due to ongoing geopolitical uncertainties, which is spurring their adoption of artificial intelligence and smart manufacturing to offset financial pressure, according to a Standard Chartered survey on Wednesday. About 62 per cent of top executives surveyed predicted cost increases of 5 to 14 per cent in
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Coastal and low-lying areas across Hong Kong have been hit hard by Severe Typhoon Ragasa, as it brought a significant storm surge and rainstorms to the city, inundating streets and promenades. Widespread flooding could be seen across the city on Wednesday morning, with the Hong Kong Observatory reporting that water levels in some areas had
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Hong Kong’s bankers and traders hunkered down at home or booked hotels near their offices as Super Typhoon Ragasa descended on the Asian financial hub. The big international banks, including Goldman Sachs, Morgan Stanley and HSBC Holdings, told most employees to work from home before the typhoon unleashed a deluge of rain and sustained winds
