Hong Kong attracts biotech companies and tech startups to raise funds
“I encourage biotech and startup businesses in India to investigate Hong Kong as a potential location for funding, intellectual property commercialization, and international company expansion. The two main incubators in Hong Kong, Cyberport and Hong Kong Science Park, offer startup funding and mentorship programs. The government provides money for local universities to collaborate on research and development initiatives with their international counterparts, and Hong Kong is home to five of the top 100 universities in the world. Despite having no revenue for the previous five years, Hong Kong has permitted international biotech companies to list on its stock exchange and generate funds through initial public offerings (IPOs) since 2018. Already, 40 biotech companies have listed in Hong Kong. At an interactive meeting at WTC Mumbai, Ms. Vian Cheung, Director, Thailand and South Asia, HKTDC, stated, “This offers biotech and medtech companies in India a huge opportunity to raise global capital by listing in Hong Kong stock exchange.” The World Trade Center Mumbai and the All India Association of Industries (AIAI) collaborated to organize the event. The Hong Kong Trade Development Council (HKTDC), a non-profit organization with 50 offices globally, was founded in 1966 with the goal of advancing international trade through Hong Kong.
Ms. Cheung noted that Indian medical device manufacturers can advertise their goods and source inputs by using the HKTDC trading portal. Hong Kong can also serve as a testing ground for medical equipment and devices made by Indian companies and used in Chinese hospitals.
“Hong Kong has zero import duty and value added tax,” Ms. Cheung said, highlighting the benefits of Hong Kong as a gateway to the global market. With a low corporate tax rate of 16.5%, the nation welcomes 100% foreign direct investment in the majority of industries, and starting a business is simple because everything is done digitally. The third-largest arbitration and mediation center in the world is located in Hong Kong. The Double Taxation Avoidance Agreement (DTAA) between Hong Kong and India is advantageous to Indian businesses. Seventy of the top 100 banks in the world are based in Hong Kong, and the city-state is home to 9,000 international businesses. Since most Asia-Pacific nations can be reached in five hours by plane, Hong Kong boasts great air connectivity.
Ms. Cheung extended an invitation to Indian businesses to investigate Hong Kong as a potential gateway to international markets. “Hong Kong has excellent logistics and supply chain infrastructure,” she explained. It boasts one of the busiest seaports and the busiest air freight hub in the world. Under several trade agreements, Hong Kong has duty-free market access to China and ASEAN. By establishing warehouse facilities here, Indian manufacturers and e-commerce businesses can export goods via Hong Kong. Hong Kong is the 10th largest goods exporter in the world and it is the 9th largest trade partner of India.”
Ms. Cheung further pointed out that Hong Kong is also the world’s leading financial center. Hong Kong accounts for over 96% of all offshore renminbi trading. Indian businesses can issue green bonds for sustainability initiatives, and the Hong Kong government offers registered businesses financial support for green technology.
Mr. Rajesh Bhagat, Consultant South Asia, HKTDC, welcomed Indian businesses to take part in and profit from the 35 trade shows the organization hosts each year in his remarks. He claimed that we have 35 trade events in the areas of electronics, entertainment, housewares, lighting, and other areas, drawing 8,800 exhibitors from all over the world. Our Buying Missions and Click2Match, an online platform that uses artificial intelligence to link buyers and sellers, are also open to Indian businesses. Our internet sourcing platform, which has linked 2 million customers and generates 24 million inquiries, is extremely advantageous to Indian businesses.
Mr. Bhagat extended an invitation to Indian fintech companies to take part in the Asian Financial Forum, which connects entrepreneurs with private equity and venture capital investors and is the biggest regional gathering, with 3,000 attendees from 50 countries. In order to help Indian startups expand their businesses abroad, HKTDC will cover their costs, he stated. Additionally, we are negotiating a successful partnership with the Maharashtra State Innovation Society to support India’s startup environment.
In order to encourage one-on-one business matchmaking for attendees, he also asked Indian biotech, medtech, healthcare, and pharmaceutical businesses to attend the Asia Summit on Global Health and the Medtech & Healthcare Fair.
Additionally, Mr. Bhagat recommended that Indian startups and businesses use the Asia IP Exchange Platform, which connects investors, IP service providers, and IP owners, to market their intellectual property.
“India has strong economic relations with Hong Kong ever since it was a British colony,” said Dr. Vijay Kalantri, President of the All India Association of Industries (AIAI) and Chairman of WTC Mumbai, earlier in his welcome remarks. Over 40,000 Indians call Hong Kong home, and each year, 2 lakh Indians travel there for work and pleasure. Bilateral commerce, which currently stands at USD 28 billion, has enormous growth potential. Partnerships are particularly possible in the fields of IT, research and technology, finance, tourism, and other service industries.
According to Dr. Kalantri, HKTDC previously collaborated with the All India Association of Industries (AIAI) and WTC Mumbai to enable Indian enterprises to participate in their trade exhibitions.
In order to strengthen bilateral trade and investment ties, Dr. Kalantri gave his word that WTC Mumbai and the All India Association of Industries (AIAI) would keep collaborating with HKTDC in key industries like manufacturing and services.
WTC Mumbai Executive Director Ms. Rupa Naik suggested a vote of gratitude for the occasion. “Hong Kong is a promising gateway for Indian companies because it can be reached by flight from most Asian countries in 5 hours,” Ms. Naik said. It is more than just a center of international finance. It is also a bustling place to conduct business. By attending the HKTDC trade fairs and connecting with representatives from around the globe, Indian MSMEs can get a wealth of knowledge.
