Financial Secretary Paul Chan said the city's government-owned investment vehicle aims to forge a more competitive tech-innovation ecosystem in the SAR, as he highlighted its differences with Singapore's sovereign investment arm.

While the Hong Kong Investment Corporation (HKIC) has been considered by some as a local version of Temasek in Singapore, Chan said the two bodies are “completely different” in an interview marking two years of the current administration.

“I think it’s like comparing apples and oranges," he said.

He said the two goals of the HKIC are to generate appropriate financial returns, and to help boost the innovation and technology industries and create a local ecosystem.

“Other than conducting its own investments, a more important [function of the firm] is that it will serve as a guide for other long-term and sovereign wealth funds and to invest in certain sectors together... to create a domino effect and attract HK$100 billion, or HK$200 billion or even HK$300 billion,” Chan said.

He noted that the government investment vehicle, which was set up two years ago and manages some HK$62 billion in assets, is still operating at an initial stage with only two deals signed so far, and authorities will reveal more details regarding projects with the release of its yearly report later.

The HKIC signed deals with tech firms SmartMore and BioMap InnoHub earlier this month.

On the local property market, Chan said it remains stable despite a drop in prices in May, snapping a two-month increase following the removal of all cooling measures.

“Sometimes it’s difficult to avoid fluctuations in the residential property prices because they're affected by multiple factors, including interest rates as well as supply and demand. They're also affected by how people perceive the outlook of the property market and the city’s economic situation, job market, etc.

“I believe the most important thing for the government is to maintain a healthy development of the property market, in other words, not to have major fluctuations.”

The financial secretary added the government will keep ramping up land supply.

Chan also expressed confidence towards the SAR economy in the second half of the year.

He said while the economy was in its recovery stage in the first six months of 2024 and was still facing challenges, a series of mega events in the next six months will further boost local economic activity.