🧠 Food for thought

Implications, context, and why it matters.

### Details on HKIC’s prospective investment approach in fintech, aerospace and AI remain unclear

• Fintech, aerospace, and artificial intelligence have been named as areas being considered by the Hong Kong Investment Corporation (HKIC), yet the way investments would be made has not been spelled out.
• Usual cheque sizes, preferred company stages, and working definitions for these sectors have not been provided.
• A process for finding, vetting, or working with co-investment partners has not been described.
• A clearer track record has been laid out in hard tech, healthcare and biotech, and green and new energy, with more than 170 companies backed as of the first annual report covering 2024.

### A proposed tax bill could create opportunities for fund managers and service providers

• The government plans to introduce a bill in the first half of 2026 to strengthen the preferential tax regime for funds, single family offices, and carried interest, according to financial secretary Paul Chan .
• Hong Kong’s asset and wealth management business exceeded $31 trillion at end-2023, with 64% of funding coming from non-Hong Kong investors, according to the government’s policy highlights page 1.
• This direction may lead fund management firms to launch new funds or widen existing ones to use the tax benefits, though timing depends on the final legislation .
• Technology vendors may get more requests for fund administration, compliance, or legal help once new rules are proposed then enacted. Professional service firms may see similar demand.