Hong Kong could welcome more top innovators from Europe, the US and Asia early next year, according to the technology minister

“We have recently had discussions with several companies, not necessarily limited to Europe and the US, but also with some well-known Asian companies,” he said on a television broadcast, but declined to name the companies.

“It is possible that we will see these renowned foreign companies set up in Hong Kong as early as early next year.”

Innovation, Technology and Industry Minister Professor Sun Dong has hyped the large number of mainland companies heading to Hong Kong “as they will contribute to a more vibrant innovation and technology ecosystem”. Photo: Yik Yeung-man

The local economy suffered domestic and external shocks in 2023, with sluggish growth across the border and possible cuts in US interest rates contributing to an uncertain outlook for Hong Kong.

Sun also noted the larger proportion of mainland companies planning a presence in Hong Kong, noting that they already have proximity and close business ties to the city.

Many of the companies had strong international backgrounds, such as microelectronics company J2 Semiconductor, which employed talent from the mainland, Hong Kong, Taiwan and the United States, he added.

“It is a good thing that mainland companies come first as they will contribute to a more vibrant innovation and technology ecosystem in Hong Kong, which will attract global attention and boost the confidence of foreign companies,” Sun said.

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UBTech Robotics, the mainland's largest maker of educational and humanoid robots, and British-based global pharmaceutical company AstraZeneca are among the latest companies to pledge to set up shop in Hong Kong.

Asked whether the influx of companies focused primarily on research and development could hinder the city's long-term “re-industrialization” push, Sun said some of the incoming companies planned to set up pilot production lines to help generate revenue .

The technology minister also touched on the government's efforts to support local startups, saying they are seen as a “hope for Hong Kong's future high-quality industrial development.”

“Ultimately, I hope that in five or 10 years these companies will become giants in Hong Kong, just like Huawei, Tencent and BYD are in Shenzhen today,” he said.

UBTech Robotics, the mainland's largest maker of educational and humanoid robots, is looking to establish a presence in Hong Kong. Photo: Simon Song

Finance Minister Paul Chan Mo-po said on Sunday that Hong Kong is pushing to strengthen its global presence and will host a series of mega events covering areas such as sports, culture, trade and finance.

Events include the Asian Financial Forum in January, the Hong Kong International Diamond, Gem and Pearl Show in February and Art Basel in March, as well as the Global Financial Leaders' Investment Summit in November.

“These activities highlight Hong Kong's rich mix of Chinese and Western cultures, as well as its diverse and inclusive cultural characteristics,” he said.

“With the new elements and experiences, both local and international visitors will be excited to visit and return to Hong Kong.”

Chan said he would also travel to Switzerland next month for the World Economic Forum in Davos, where he would showcase Hong Kong's benefits to global financial leaders.

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The finance chief also looked ahead to 2023 and said the city is on the path to full recovery while facing several challenges such as increased geopolitical tensions, persistent inflationary pressures and changes in consumer behavior.

The headwinds have put pressure on commodity exports, economic recovery and the development of the city's asset markets, he explained.

But Chan said the city will benefit in the long term from the government's efforts to boost the local economy, such as the “Happy Hong Kong” campaign and the increase in delegations sent abroad to “expand the circle of friends.”

“But the seeds planted through previous efforts will yield more significant harvests in the coming year and beyond,” he added.

The finance chief also stressed that Hong Kong must continually seek new solutions and paths and maintain a curious and open-minded attitude to cope with changing times.