HKIC reports double-digit investment return as ‘patient capital’ strategy bears fruit

The Hong Kong Investment Corporation (HKIC) recorded a major jump in investment income during its second year of operation, as it expanded its role as the city’s “patient capital” engine driving local economic development.

The wholly state-owned investment firm generated about HK$6.46 billion (US$824 million) in investment income in 2025, a stunning 175 per cent year-on-year increase, according to its latest financial report released on Thursday.

The fund achieved a net internal rate of return of 14 per cent, an impressive return that indicates the vehicle has already defied the typical early-stage “J-curve” downturn typically seen in new venture capital funds, as HKIC’s CEO confirmed during a meeting of the Legislative Council’s Financial Affairs Panel last month.

The firm’s robust performance reflects improving returns across its expanding portfolio of more than 200 projects, officials stated. Ten companies in HKIC’s portfolio had already listed in Hong Kong as of March, while more than 30 others were waiting for their listing applications to be approved.

Financial Secretary Paul Chan Mo-po, who also chairs the HKIC, said the investment vehicle had entered a new phase of development by accelerating a “capital – technology – talent” cycle to support Hong Kong’s economic growth.

“We are translating strategic priorities into a thriving ecosystem that reinforces Hong Kong’s role as a ‘superconnector’ and ‘super value-adder’ on the global stage,” Chan said.