Secretary for Innovation and Technology Sun Dong said on Saturday that Washington's signing of an executive order banning some US investment in some Chinese businesses will affect Hong Kong enterprises in the short term.

The order, signed by US President Joe Biden on Wednesday, aims to limit investments in companies involved in semiconductors and microelectronics, quantum information technology and some artificial intelligence systems.

But speaking on an RTHK programme, Sun expressed confidence that the restrictions will not paralyse the city's technological development.

"In the short term, I believe there will be some impact on the targeted sectors when it comes to overseas investment. Of course, it will also make our work of attracting enterprises and talent more difficult," he said.

"But in the long run, I believe the wave of new technology and industry will not stop because of this."

Sun noted that there has been little direct investment from the US in key areas in the past one or two years, adding that officials should make plans to facilitate other venture capital funds from the mainland and overseas.

The technology chief also said the SAR is looking into the possibility of subsidising key enterprises which are settling in Hong Kong.