Hong Kong launches healthcare innovation and $40B tech fund

As part of its First Five-Year Plan for Economic and Social Development, Hong Kong is launching several major initiatives focused on healthcare innovation and technology investment.

To bolster the medical sector, the city will establish a Healthcare Innovation System featuring the Centre for Medical Products Regulation. This new body will provide independent oversight and approval for drugs and medical devices, replacing the current voluntary system with a statutory regime. The plan also includes a phased rollout of primary evaluations for new drug registrations and aims to align Hong Kong-registered medical products for use across the Greater Bay Area.

In the technology sector, the government plans to establish an Innovation and Technology Industry-Oriented Fund of at least $40 billion. This fund will combine $10 billion in government capital with at least $30 billion from private investors to target sectors such as AI, robotics, semiconductors, and life sciences. Additionally, an enhanced Innovation and Technology Venture Fund will provide up to $2.5 billion to support start-ups. The development plan also emphasizes fintech, including the tokenization of finance and the expansion of digital asset frameworks through the Hong Kong Monetary Authority.