Seventeen companies have recently signed a deal to either establish or expand their operations in Hong Kong as part of the government’s efforts to boost the tech sector in the city. Among these companies is iFLYTEK, a Chinese artificial intelligence giant that has been under US sanctions since 2019.
The Office for Attracting Strategic Enterprises (OASES) organized a signing ceremony where agreements were signed with representatives of these 17 firms, which will either set up their headquarters or new offices in Hong Kong or expand their business in the city. The city’s financial chief, Paul Chan, gave a speech during the ceremony, emphasizing the importance of partnerships with strategic companies.
The companies involved in this deal include 15 firms from mainland China, such as AI developer Baidu Ai Cloud, animation company China Year, new energy vehicle company BeyonCa, and robotics companies Pudu Robotics and Horizon Robotics. Tao Xiaodong, CEO of Xunfei Healthcare, a subsidiary of iFlytek, announced that iFlytek would invest HK$4 million in Hong Kong over the next five years and establish a headquarters in the city.
Xunfei Healthcare aims to collaborate with Hong Kong’s public and private medical sector by assisting doctors in writing medical records and recommending diagnostic plans with AI systems. By establishing a presence in Hong Kong, iFlytek hopes to expand internationally. Despite being sanctioned by the US government in 2019 for alleged human rights violations, the company is looking to move forward and grow its business.
Apart from Chinese companies, American company Digital Domain and French company Prophesee were also among the 17 firms that signed the agreement. During the ceremony, Secretary of Finance Paul Chan highlighted that since the establishment of OASES in 2022, a total of 67 strategic companies have been attracted to set up new offices or expand their business in Hong Kong. These companies are expected to invest around HK$42 billion in the city in the coming years, creating approximately 17,000 job opportunities.
In his 2022 Policy Address, Lee announced the initiative to attract capital and enterprises to Hong Kong by setting up OASES and a fund to invest in potential companies. The city is looking to position itself as a hub for tech innovation and development, and the recent agreements with these 17 companies are a step towards achieving that goal.
This initiative not only benefits the companies involved but also has the potential to boost Hong Kong’s economy and create job opportunities for its residents. With the government’s support and the interest of these tech companies, Hong Kong’s tech sector is poised for growth and success in the coming years.
