Hong Kong's startup ecosystem has been steadily maturing in recent years, leading to a surge in early-stage firms with significant potential.
According to the latest statistics from Invest Hong Kong (InvestHK), the number of startups in the city reached a record high of 4,694 this year, a 10% increase compared to last year and approximately 40% more than in 2020. Growth has been particularly strong in the health and medical sector, and in the sustainable technology/green technology sector.
Startups are also making a substantial contribution to the labour market. In 2024, they employed nearly 18,000 people, reflecting a 7% year-on-year increase and growth of around 65% since 2020.
Ms Lau highlights that startups in the health and medical sector, and in sustainable or green technology, have seen the largest increases, reflecting the government’s focus on innovation and technology, and green energy.
Director-General of Investment Promotion Alpha Lau said that the startup sector's robust growth can be attributed to proactive government measures aimed at supporting its development. “The Hong Kong Government has spent a lot of effort to promote emerging sectors and emerging companies, resulting in remarkable growth in the total number of startups.”
One local fintech startup, Riverchain, was established two years ago and provides a digital financing platform for the construction industry. The company highlighted that Hong Kong's well-established financial infrastructure has been instrumental to its development.
Riverchain Chief Executive Officer Ben Wong remarked: “Hong Kong was very strategic to our growth. We want to be more than just a Hong Kong company, we want to be an international company. Hong Kong provides us with a strategic location, just a four-hour ride to Southeast Asia.”
Mr Wong emphasised the quality of talent in Hong Kong, stating that it is among the best in the world, offering a reliable pool of highly skilled and knowledgeable individuals.
Riverchain Chief Executive Officer Ben Wong (right) believes Hong Kong’s favourable location and highly skilled talent make it the ideal place for business development.
One emerging segment in Hong Kong's innovation landscape is femtech, which focuses on technology solutions for women's health. One startup in this area, Femtech Future, is a consulting firm that assists other femtech startups.
The company's founder and CEO, Maaike Steinebach, stated: “Hong Kong has an amazing entrepreneurial ecosystem, so firstly it is very easy to set up your company here. It took me about a week to set it up – the company secretariat and accountants are readily available. There are also amazing co-working spaces, making it convenient for a startup like me.”
Femtech Future Founder and CEO Maaike Steinebach (left) highlights the ease of establishing a company in Hong Kong and the financial services sector’s support for small and medium enterprises as being instrumental.
In the coming year, InvestHK will continue to engage with companies around the world through its 34 global offices. The department aims to provide potential investors and businesses in the Mainland and overseas with the latest information about Hong Kong's business environment, encouraging them to set up or expand their operations in the city.
InvestHK is also focused on enhancing its investment promotion capabilities by expanding its overseas network, particularly in countries along the Belt & Road Initiative. This includes establishing a new office in Türkiye that is expected to become operational in the first quarter of 2025.
According to the latest annual survey jointly conducted by Invest Hong Kong (InvestHK) and the Census & Statistics Department, this year Hong Kong hosted 9,960 firms with parent companies located outside of the city, a record high number and a 10% increase on the previous year. Meanwhile, the number of people employed by such firms reached nearly 500,000, an increase of 5% year on year.
Speaking to news.gov.hk, Director-General of Investment Promotion Alpha Lau said the figures demonstrate that Hong Kong's business environment has fully regained its strong growth momentum following the COVID-19 pandemic.
She highlighted that due to uncertainty in the global economic situation, many companies are taking a cautious approach to expansion, but added that the latest numbers indicate Hong Kong is a pragmatic choice of location as it remains a very good place to do business.
Director-General of Investment Promotion Alpha Lau says the latest numbers indicate Hong Kong is a pragmatic choice of location as it remains a very good place to do business.
“Facts speak louder than words. Companies expand their business here and use Hong Kong as a springboard to enter into Mainland China, into Asia, or for Chinese companies to go out and expand into the rest of the world.”
Analysed by parent company location, the top five sources of firms from outside Hong Kong are Mainland China (2,620), Japan (1,430), the US (1,390), the UK (720) and Singapore (520).
Moreover, the top 10 locations all recorded increases in 2024. These include traditional markets in the Americas and Europe, as well as Asian markets.
Notably, the number of regional headquarters in Hong Kong increased to 1,410, representing a 5.5% rise.
These impressive figures not only reflect Hong Kong's attractiveness but also indicate that InvestHK’s efforts to draw investment to the city are bearing fruit.
As of November, InvestHK had assisted over 500 companies in setting up or expanding their operations in Hong Kong in 2024, an increase of more than 50% year on year.
Companies that have established their headquarters in Hong Kong believe that the city's advantages as a hub for capital, talent and technology are self-evident.
KN Group Hong Kong Treasury Centre General Manager Lucas Kong highlighted that the city maintains its status as one of the world's leading financial centres, boasting a mature and open financial market environment.
“As a fintech company leveraging artificial intelligence in the financial sector, establishing our headquarters in Hong Kong significantly facilitates the expansion of our international operations,” he explained.
Mr Kong also stressed that the robust economic incentives provided by the Hong Kong Government have been instrumental both in attracting businesses and fostering technological innovation.
KN Group Hong Kong Treasury Centre General Manager Lucas Kong (back) says Hong Kong’s mature financial market incentivises companies to establish their headquarters in the city with a view to expanding internationally.
He added that while the company’s expansion has led to its liquidity structure becoming more decentralised, resulting in increased management costs, establishing a global corporate treasury centre in Hong Kong has allowed the business to centralise fund management and allocation, thereby reducing costs and enhancing efficiency.
“This move is made possible by Hong Kong's transparent and open business ecosystem, coupled with its favourable tax regime.”
Many family offices are also zeroing in on Hong Kong as the Government’s various high-value talent attraction schemes make the city an enticing choice for such operations.
One example of such a firm is the family office Glory, which engages in insurance and trusts.
Glory's Global CEO, Gao Yang, explained that while it operates in both Hong Kong and Singapore, many of its clients favour Hong Kong, due to the Government's introduction of a range of flexible and practical talent admission policies for Chinese high-net-worth individuals. She said these initiatives provide a variety of pathways, enhancing Hong Kong's appeal as a premier financial hub.
Glory’s Global CEO Gao Yang (right) highlights that due to the Government’s introduction of a range of flexible and practical talent admission policies, Hong Kong attracts many Chinese high-net-worth individuals.
