Tourists visit Tsim Sha Tsui in south China's Hong Kong on April 30, 2023. (PHOTO / XINHUA)

The newly-created Hong Kong Investment Corporation is in preliminary discussions with certain interested institutions after receiving “a number of” proposals, and will consider making investments in accordance with the criteria formulated by its board of directors, says Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

Apart from investment return, the corporation will take into account the potential of the enterprises concerned or individual projects in driving industry development and employment in the special administrative region.

The board has formulated the corporation’s investment strategies and criteria and, with regard to the various focuses of the funds under its management, it has devised appropriate strategies and asset allocation for investments in projects, corporates and funds

The HKIC will also consider whether these enterprises and projects can help promote the city’s competitiveness and economic vibrancy in the long run, Hui said in his written reply to the Legislative Council on Wednesday.

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But, he said it’s not appropriate to stipulate a mandatory timetable or an investment ratio because the process will be subject to discussion among collaborating parties, specific market circumstances and decisions by the corporation’s board.

The HKIC’s establishment was among a string of measures announced by Chief Executive John Lee Ka-chiu in his maiden Policy Address in October last year in an effort to further optimize using fiscal reserves to drive the development of the economy and industries.

The corporation will manage the Hong Kong Growth Portfolio, the Greater Bay Area Investment Fund and the Strategic Tech Fund set up under the Future Fund, as well as the newly-formed Co-Investment Fund, with an initial HK$62 billion ($7.94 billion) allocated for the corporation’s management.

Members of the HKIC’s board of directors were announced in February this year.

Hui said the board has had in-depth discussions on matters relating to the corporation’s corporate structure, governance and personnel arrangement,as well as administration and management.

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The board has formulated the corporation’s investment strategies and criteria and, with regard to the various focuses of the funds under its management, it has devised appropriate strategies and asset allocation for investments in projects, corporates and funds. It has also drawn up procedures and criteria in sourcing investment partners or targets.

In the initial stages of the corporation’s operation, the Hong Kong Monetary Authority will render support in investment, logistics and operational matters, Hui said.

Eight general partners had been selected to make strategic investments for the Hong Kong Growth Portfolio before the corporation’s establishment, with investments in a wide spectrum of industries, including technology, healthcare, logistics and supply-chain management, business and financial services, as well as consumer products.

Contact the writer at evanliu@chinadailyhk.com