Hong Kong’s sovereign wealth fund inked its second strategic partnership agreement within two weeks, further advancing the special administrative region’s innovation and technology ecosystem through strategic investments.

On Monday, Hong Kong Investment Corp Chief Executive Officer Clara Chan Ka-chai signed a strategic partnership agreement with BioMap Co-founder and CEO Liu Wei, witnessed by Financial Secretary Paul Chan Mo-po.

READ MORE: Chan: HK can seize ‘first-mover’ advantages in biocomputing

Established in 2020 by Baidu Co-founder and CEO Robin Li Yanhong and Liu Wei, BioMap is a bio-computing model generator that enables researchers to decode protein or molecular sequences, generate new protein structures and construct new combinations that will benefit pharmaceutical product development, as well as create new solutions for industrial production, agriculture, and consumer products.

Paul Chan said that Hong Kong has four advantages in pushing forward with the establishment of a bio-computing hub in Hong Kong

The strategic agreement specifies four initiatives that BioMap should undertake. First, the company has to launch its accelerator program to support over 50 cutting-edge life science early-stage research and development projects in Hong Kong over the next five years, with priority given to projects recommended by universities and strategic partners in Hong Kong.

It also has to organize an international bio-computing conference in Hong Kong every year; prioritize the training of young talent in Hong Kong in the field of bio-computing (a combination of AI and life sciences) and related sectors through internship opportunities, seminars and training sessions; and consider Hong Kong as a priority venue for its corporate initial public offering (IPO).

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Paul Chan said that Hong Kong has four advantages in pushing forward with the establishment of a bio-computing hub in Hong Kong.

First, he said, Hong Kong boasts a robust innovation ecosystem and is home to some of the world's leading universities and research institutions. He added the SAR is working to set up an InnoLife Healthtech Hub in the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop.

The investment projects led by the Hong Kong Investment Corp will be able to drive at least double the market funds to invest in the same project, with funding coming from overseas institutional investors and companies.

Clara Chan Ka-chai, HKIC Chief Executive Officer  

Second, the AI supercomputing center at Cyberport will begin its first phase of operation in the second half of this year, he said. Upon completion of the second phase, the center will offer a computing power of 3,000 petaflops by early 2026, supporting research and development in artificial intelligence, life science, and other cutting-edge fields.

Third, under the “one country, two systems” framework, Hong Kong continues to maintain a free flow of information and data, enabling the orderly flow of mainland data to Hong Kong for research and development purposes with the convergence of data from overseas countries, he said.

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Fourth, he added, Hong Kong also has a complete funding chain, ranging from a rich private equity and venture capital ecosystem to a deep and wide listing platform, that helps channel other possible funding sources into enterprises and projects.

“We welcome companies such as BioMap to list on our stock market, using our world-class fund-raising platform to grow bigger and stronger,” the financial secretary added.

BioMap is one of the second batch of strategic enterprises to have set up business in Hong Kong. The company has built more than 10 commercial collaborations with global life science companies, and secured contracts with over 200 users based on its AI-generated protein platform, including international pharmaceutical companies, leading contract development and manufacturing organizations, synthetic biology and green technology enterprises, as well as research institutions.

“The investment projects led by the Hong Kong Investment Corp will be able to drive at least double the market funds to invest in the same project, with funding coming from overseas institutional investors and companies,” Clara Chan said.

In mid-June, HKIC signed its first strategic cooperation agreement with homegrown AI unicorn SmartMore Corp, covering the upstream and downstream industrial chains of AI, talent training, and improving Hong Kong’s computing power level

She added: “HKIC will aggregate and channel resources to support BioMap’s development in Hong Kong, and revitalize innovation and development in the relevant vertical and horizontal industrial chains.”

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Liu said BioMap is studying various listing plans and will give priority to listing in Hong Kong. He added that Hong Kong’s international status, favorable financial policies, globally aligned intellectual property and data regulations, rich pool of interdisciplinary AI and biotech talents and an innovative academic environment can be leveraged to enhance the company’s global production, commercial network, and ecosystem partners.  

In mid-June, HKIC signed its first strategic cooperation agreement with homegrown AI unicorn SmartMore Corp, covering the upstream and downstream industrial chains of AI, talent training, and improving Hong Kong’s computing power level.

By combining the Hong Kong Growth Portfolio, Greater Bay Area Investment Fund, Strategic Tech Fund, and Co-Investment Fund, the SAR announced the establishment of the HKIC in 2022 with capital of no less than HK$62 billion ($7.94 billion), to further optimize the use of financial reserves for promoting the development of industries and the wider economy.