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Two dozen start-ups may crop up in the city, according to investment agency InvestHK
June 14, 2024 | Staff Reporter | Hong Kong | PropTech
InvestHK, the agency responsible for attracting foreign investment in Hong Kong, said that at least two dozen PropTech companies are expected to set up in the city, after attracting HK$273.7 million (US$35 million) of investments from 25 companies in the sector last year.
These investments came from eight countries and regions. 12 companies from China set up in the city, followed by four from Australia and three from the United Kingdom. Companies from Germany, Macau, Singapore, Turkey and Pakistan were also among the investors.
These newly set up firms created 221 jobs, mainly engineers, technicians and architects, according to InvestHK. “Hong Kong has a robust and mature infrastructure market, which helps attract companies to it,” said Herman Tse Yu-man, InvestHK’s Head of Business and Professional Services.
The agency expects to attract a similar number of “relevant companies” this year as well, he added. One of the companies that set up in Hong Kong was Architecture & Decoration Technology Group, which provides services using artificial intelligence and Big Data. “We chose Hong Kong because we believe construction and decoration is an international business, and therefore, Hong Kong was our top choice as we want to build our business with the rest of the world,” said Isabella Zhong, Managing Director of Architecture & Decoration.
“Our next focus is Southeast Asia and the Middle East,” she said, adding that the company has been using the city as a base to connect with clients from Saudi Arabia and Israel. She said the company will make full use of the opportunities Hong Kong has to offer and will consider listing on the Hong Kong stock exchange when the time is right.
Opportunities Aplenty
Ailytics is another company that came to Hong Kong last year. The Singaporean PropTech firm uses artificial intelligence to enhance safety and productivity for companies in the construction and manufacturing industries. The company plans to use its presence in Hong Kong to tap business opportunities in mainland China.
In May, InvestHK said Hong Kong had attracted 45 life-science technology companies to set up or expand in the city. These companies had invested some HK$6.5 billion since 2023, which officials said was a positive response to their efforts to make Hong Kong a life-sciences innovation hub.
The investments will yield around 3,200 jobs in the coming years, according to data from the Office for Attracting Strategic Enterprises and InvestHK. Last month, an InvestHK executive said the Middle East and Indonesia were the next targets for Hong Kong to attract family offices.
There are many opportunities in Indonesia, Jason Fong, global head of family office at InvestHK said. “For these big Indonesian family businesses, as well as family offices, they’re familiar with Hong Kong, but surprisingly, they’re not too aware of how much knowledge and wisdom we have in the family office [space],” Fong said.
